The rising costs of car ownership are driving more Americans to consider going without a vehicle, a recent survey said.
A combination of more expensive monthly car payments and rising insurance costs are two factors that pushed 35% of respondents to say that they are planning to go carless by the end of the decade, the Zipcar survey said.
Moreover, 44% of respondents said they already know a peer that has given up on car ownership without consequence, according to the survey.
Broken down by generation, 45% of Gen Xers and 51% of millennials were more enthusiastic about embracing the car-free life compared to 28% of Gen Xers and 21% of Baby Boomers saying the same.
“The traditional American idea of owning a car – receiving the gift of new keys at sixteen, as a graduation surprise, or to drive around a city – is dead,” Zipcar Head Angelo Adams said. “Car owners are feeling the stress of car ownership and are increasingly adopting affordable transportation options easily accessible at their fingertips. Why waste time and money on a car that sits unused and parked most of the time?”
Shopping around for new auto insurance can help lower your costs. The Credible marketplace can help you compare multiple providers and find your personalized rate in minutes without affecting your credit score.
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New car prices skyrocket
Over the last decade, the shift to higher-end luxury vehicles, driven by a low-interest rate environment and extended financing loan terms, has meant that economy cars are not as readily available, according to a recent Edmunds report.
New car prices skyrocketed by 33% over the last five years, and the average transaction price rose to $47,713 in March, according to Edmunds. At the same time, consumers have also been dealing with more expensive financing terms.
Consumers paid an average monthly payment of $730 for new vehicles in the first quarter of 2023, compared to $656 a year ago, according to a separate Edmunds report. For used cars, consumers paid an average monthly payment of $551, a slight increase from the $542 they paid last year.
“This is a hefty price tag that most Americans cannot sustain,” Zipcar said in a blog.” In fact, more Americans are at risk of car repossession. For some, cars are a necessity, we know. But for those living in the city, there are convenient and affordable options: public transportation, biking, walking, and car sharing.”
If you are struggling with rising car prices and want to save money, you could consider finding a new auto insurance provider to lower your monthly premium. You can visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.
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How to save on car costs
Car sharing is one way to forgo car ownership and save on costs, according to Zipcar. For Americans not willing to let go of their vehicle can use these techniques to lower the cost of car ownership:
Shop for cheaper insurance
Higher insurance rates are why 33% of drivers consider switching car insurance companies in the past year, according to a recent Policygenius survey.
Shopping for the same auto coverage strategy and limits with multiple insurance carriers can help get you the best deal possible. Get at least three different auto insurance quotes.
Shop for the best loan terms
Searching for pre-approved financing in a high-interest-rate environment could help you find a better deal. Consumers should shop for pre-approved financing as diligently as they shop for an actual vehicle to get the best terms.
If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium without affecting your credit score.
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