Comment by kccqzy 9 hours ago
A car does not cost $350 and $500 per month. If it does, it’s a status symbol, not merely a tool to get from A to B, and therefore it is unfair to compare it against taxi rides.
There’s nothing wrong with wanting a nicer more luxurious car for yourself. But it’s just ingenious to compare that against taxis with beaten-up and spartan but reliable cars.
The average monthly payment for a used car in the US in 2025 was $532, according to https://www.experian.com/blogs/ask-experian/average-car-paym.... This does not count insurance, taxes, parking, or gas.
A status symbol will easily run you $1000/mo. I currently pay $350/mo (including cost of capital), and I don't know how I would pay less for a car that's not actively falling apart. Chevy Spark, manual transmission, $7k KBB value, averaging 500 miles per month.
There's no shot that number isn't being driven up by people purchasing more car than they need. You can get a used car for $10,000 or less, there's no reason one needs to pay $500/mo.
There is no tax deduction (in the US) for vehicle use that is non-business related.
> A car does not cost $350 and $500 per month.
This can vary a lot.
6 years ago, I was driving a Subaru BRZ which averaged 32 mpg. My commute was ~30 miles each way, add in a couple miles for weekly errands, and let's just say I was using 10 gallons/week. If gas was $3, that's $30/week, $120/month. Plus $150/month for insurance, it's $270/month.
Still way under your 350-500/month figure, but that's also assuming the car is paid off.
> If it does, it’s a status symbol, not merely a tool to get from A to B, and therefore it is unfair to compare it against taxi rides.
$350-500/month is cheaper than taxi rides. Even with a more reasonable 5-10 mile commute, I'd be spending probably $50/DAY if I took taxis.
You're not including an amortized cost of maintenance, registration fees, etc. Adding in tires alone ($720 for a set, 50k/1200 ~=41 months, ~$17.50/mo) brings it to almost $290/mo. Oil change every 6 months or so, add another $10/mo or so. Now we're at $300/mo and hoping nothing in the car breaks and needs repairs on a car that's already paid off, and we still haven't paid our taxes and registration fees.
Now figure in the fact you've got several thousand dollars in a car instead of even something like a high-yield savings account. At even 4% APY, if you had just $8k tied up in that car that's another ~$27/mo of income you're missing out on.
I'm not making the argument riding a taxi for every trip is cheaper than this. Just pointing out there's a lot of things people don't think about when they think of the cost of car ownership.
> A car does not cost $350 and $500 per month.
Insurance alone can be 100€ a month (and more so for younger drivers). At a very modest 5 liters / 100km and a one way route of 20 km you're at 800km a month / 40 liters of gas => 1.80€ a liter => 72€ in fuel. Your average car then has 20 ct/km for maintenance costs (inspections, spare parts, oil changes, tires, workshop time), so another 160€ a month - and more if it is a run-down junker car.
That are just the fixed running costs you have with pretty much every car, around 330€ a month. We haven't talked about depreciation yet at all. Even if you say you buy a barely road worthy wreck for 3000 € and run it until it's only ripe for the junkyard to fetch maybe 500 € every two years, that's still about 100€ a month you're paying.
And what we also haven't had a single talk about is operating and purchase taxes, highway tolls, city-core tolls, rental spots for parking (including the price you have paid for the garage in your house, it's a lot of real estate), that also can easily add to many hundreds of euros each year.
Cars are expensive once you actually include replacement/depreciation and maintenance costs.
Car insurance has essentially doubled in price over the past few years, from a combination of
- cars becoming more complicated to repair. Marco Arment of Overcast related an incident where his Rivian had a simple fender bender, and his insurance was billed $15,000 in labor and parts to fix it because of the monobody construction where you have to tear apart half the car to fix anything
- inflation in both goods and services means car repair costs are going up
- more reckless and uninsured drivers thanks to general post-covid norm breakdowns
Insurance alone can now be $150-200/month even if you don't have a particularly nice car. Combine that with gas, maintenance, and registration taxes, and I think most people in the US are paying at least $350/month for their car even if amortized costs mean they don't realize it.
Marco Arment of Overcast related an incident where his Rivian had a simple fender bender, and his insurance was billed $15,000 in labor and parts to fix it because of the monobody construction where you have to tear apart half the car to fix anything
Hyundai Ioniq 5, backing into the garage next to the RV, and at "backing into the garage" speed ran into the RV. The fiberglass body of the RV suffered a 3 inch diameter break in the fiberglass that I could have fixed myself. The Hyundai? 17,000 American dollars. The rear quarter panel took a dent, and (IIRC) the bumper might have had some damage. Part of the problem was that there really isn't a "rear quarter panel" anymore. No, as I looked at it, that piece of sheet metal goes all the way from the rear bumper to the front of the passenger compartment. The shop didn't replace that piece, but rather cut the dented piece out and welded in new sheet metal.
Between that, and all the sensors, etc., $17K for backing into a piece of fiberglass at not even a walking pace. Now that the car has some years on it, if I do that again they'll probably total it.
huh? i bought a used, very low-end/utilitarian 10 year old car and paid more than half upfront and my monthly payment was like $300. factor in insurance and gas and i was easily close to 400-450. the days of $1000 beaters that actually run well are gone :(
That's not outrageous as a car price once you add insurance, maintenance, taxes, parking, license fee, cleaning, etc
Along with any interest on the purchase or foregone investment gains. You can use a true cost of ownership calculator here.
https://www.edmunds.com/honda/accord/2022/cost-to-own/?style...