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

You don’t need to figure this money stuff out on your own. I paid off $35,000 of debt and saved $100,000 by age 26 (earning only average pay). If I can turn things around, you can too!

Start a plan to pay off debt and invest.

I’ll teach you a simple step-by-step plan to get out of debt and invest.

Real People. Real Results.

Kim paid off $45k in 28 months

Jessica and Matthias paid off $61k in 20 months

Loren and Bryce tripled their net worth in two years.

“I really enjoyed the enthusiasm and the way Best Money Class Ever helped me acquire a mindset to focus on money. Having a mentor and a process around something as important as money is really critical. Thank you for the guidance. I like the format and the presentations are very helpful.” Alex

“I enrolled to gain confidence and remove anxiety around money” Charlotte

You can pay off debt and build savings too! All you need is an education and a solid plan.

Next class starts April 24th

Let’s Get social!

@bestmoneyclassever

Why didn’t they teach this money stuff in school?!

Join me in this live free class to get the financial education you need!

Tuesday, June 13th
6:30-8:00 PM Central