Over 91.5% of American households reported ownership of at least one vehicle. US-based automakers produce around 13.7 million cars annually, and the most recent data shows nearly 287 million registered autos in all 50 states. America doesn't just love cars. America needs cars! And that's costing its citizens a lot of money. Here's the breakdown.
A Canadian man who lived and worked in the US for a few years bought a 1999 Chevrolet Prizm (a rebadged Toyota Sprinter). It cost him USD 500 in 2015. That was all he needed to ensure that going from A to B wouldn't be a hassle.
But he also decided to do something else. Instead of just treating it like a commuting appliance that has its dedicated place in the monthly financial plan, he planned on keeping all the receipts related to the car ownership cost.
It was quite the idea. Most of us don't think about our vehicles as separate expenses. In a way, they become an integral part of our basic needs package. Along with them, other costs like the price of gas, registration, insurance, or servicing get crammed in there. We don't even think about them most of the time.
This guy did the math. Over the course of almost eight years, he spent CAD 11,816.83 (USD 8.914.03) on maintenance (including windshield replacements), approximately CAD 15,640 on insurance (USD 11,798), CAD 680 (USD 513) on parking or speeding tickets, CAD 744 (USD 561) on registration, and about CAD 10,837.13 (USD 8.174.99) on gas.
After seven years and eight months of owning the seriously underpowered Prizm, the total cost of ownership is CAD 40,217.96 (USD 30,338.42).
The man has moved to bicycles and e-scooters. Now that he's car-free, he's considering acquiring a rather pricey electric cargo bike. The young man would also like to gift his girlfriend a good e-bike.
That's more than understandable. Two-wheelers occupy less space than cars, are more versatile in urban areas, and can be more sustainable because they don't need as many materials as an all-electric car.
Photo: Dave A / AACA Forums
He also argues that battery-powered bikes can help him save a minimum of CAD 5,000 (USD 3,771) per year. Whether or not it's worth it to give up the comfort of a car cabin… Well, that's up to buyers to decide. There's certainly something going on with the younger generation. They're more interested in practicality and freeing up cities from traffic than being fond of burning fossil fuels for mobility.
So, is vehicle ownership a value trap? It can be. But car dependency is so embedded into the American way of life that we mostly disregard the financial burden that is an automobile. Europe might be a better place for bicycles and e-bikes. Over the pond, the streets are narrower, and the roads are shorter.
In the US, embarking on a 10-hour journey doesn't always mean that you will cross state lines. Going from Corpus Christi to Amarillo takes about 10 hours, and you would still be in Texas. In Europe, a similar trip (Paris, France – Hamburg, Germany) can take you through four countries.
At the end of the day, there's no reliable alternative. We're going to remain on this path for quite some time. Maybe robotaxis will become so common and affordable that we won't think about financing, leasing, or taking a gamble on a rust bucket.
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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