Why I Didn’t Buy a Car (After Totaling my Car)

I totaled my car and decided to go without a car for a few months. Here’s six reasons why I didn’t buy a car (after totaling my car).

First off, I get it, anytime you hear of someone who doesn’t have a car you assume: this person is having a broke girl summer and think, “she must be struggling financially!” While I’ve never earned six-figures in my life, I paid off over $35k and saved my first 100k by 26. Flash forward over ten years later, I’m still 100% debt-free and my net worth has increased significantly.

I’ve decided to go a few months without a car after totaling my previous car, even though I have cash to pay in FULL for pretty much any car I’d like. The insurance company paid out more than I’d initially paid on my car, and I have over twelve months of expense in my emergency fund (plus I have savings for a home downpayment).

If you missed last week, here’s logistically how I live without a car in Austin, plus my exacts cost of Ubers, biking, and public transportation. Since I have the money, then why am I waiting?

Here’s why I didn’t buy a car (after totaling my car). And it’s probably not what you’re thinking.

1. Simple Living

I totaled my car right before Christmas and I had too much on my plate. It was a Friday night and I just finished doing errands preparing for my Saturday. I had plans with four different friends in one day. I had a coffee date with a friend, baptism, birthday party, and silent disco. These events were all amazing, however, I was stretching myself thin.

When I totaled my car, I felt like it was a sign from the universe to slow down. Not having a car forces me to evaluate my commitments and live simply.

2. Maintenance and Repairs

Last year I spent $2,348 on car repairs. According to AAA the cost to maintain even a new car driven 15,000 miles or less is $10,728 a year. Car repairs and maintenance take time and a lot of money.

The idea of depending on Ubers and avoiding any repairs was incredibly appealing to me.

3. Biking + a Healthy Lifestyle

Last year, I found myself in the ER and ultimately had my third surgery for Endometriosis. I physically wasn’t feeling well and for a few months, it even hurt to walk. I quickly got out of shape and gained weight. I decided to wait to buy a new car because I liked the idea of biking for my daily routine to get back into shape. I’ve since lost around fifteen pounds and am getting back to my pre-surgery weight.

4. Investing 101: Buy low

Cars are known as depreciating assets, meaning the value declines rapidly over time. I’m a fan of buying a used car, a couple years old. In the investing world, you want to buy an asset at a low value versus buying a new car, at its highest possible value.

The used car market is still inflated from supply chain issues. According to CNN, used car prices increased 45% by June 2021 from the pandemic. I didn’t want to buy a new car and I also wasn’t willing to buy an overpriced used car.

5. Clear Decision Making

Purchasing a car is a huge financial decision. I decided to wait to buy a car immediately after totaling it because I was in crisis mode. Another car purchase wasn’t on my radar, and I had no idea what I wanted next.

When it comes to managing money, you can save on a million little things, but I fully believe if you simply get two things right in your budget: a home and car, then everything else falls into place.

Deciding to live without a car bought me time to research and make an informed decision on this big purchase versus being in reactive mode to the crisis.

6. Start a Morning Routine

Lastly, I’ve been meaning to get a better routine for my mornings. Not having a car and relying on the bus and biking was a forced way for me to plan ahead and add structure to my life (specifically to my mornings).

I now wake up about an hour and a half earlier to start my day!

Eventually, I’ll buy another but, but for now these six reasons are why I didn’t buy a car after I totaled my car.

Hey! I'm Carly

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