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Have you read or heard stories of people becoming one-car families and thought, wow, how do they do that? For a long time, I thought I was defective, because any time I thought of becoming a one-car family, I just could not figure out how to make it work between my husband and I. And we don’t even have kids to figure into the equation! I felt bad because a lot of debt pay off stories feature people who became one-car families, and I thought, “I wish I could sell my car and put that to debt! That’s why I can’t be debt-free!” 
As public transportation gets more reliable, it might be possible for you to become a one-car family, sell your car and use the money (and savings from gas/insurance) to pay off debt or add to your savings.
I’ve done a lot of thinking about becoming a one-car family now that I work from home, and if you’ve ever wondered if it would work for you, I go over reasons why you should sell your car and three very good reasons why you should not sell your car. I do adore my current car so much, it’s more than just a car for me! I wash it and clean it all the time, even bought some car mats to keep the kids dirty shoes from ruining the carpet!
Practical Reasons to Become a One-Car Family to Get Out of Debt
If you’re considering becoming a one-car family, you may be in a good position to do so (or you may be better off financially) if any of the following apply to you:
- You owe a lot of money on your car and it’s negatively impacting you (this is something Dave Ramsey recommends too and, while I don’t follow him 100%, this is practical advice I agree with!)
- No one will be stranded if you carpool with your spouse/significant other/or even roommate
- You have great public transportation
- If you have other modes of getting around – some cities offer Express shuttle buses for downtown workers or some offices coordinate carpools among coworkers
- You could reduce your monthly outgoings by selling your current car and leasing a new one. With the lump sum you receive from selling your car you can pay off some of your debts, then you could lease a car for a smaller monthly payment than you would have been paying which would mean your monthly outgoings are less, on top of that your yearly outgoings will also be reduce as you will save money by not having to pay for servicing and an MOT isn’t required for 3 years with a new car. For more information on leasing a car reference this page.
If most of these reasons apply to you and you can make it work, it might be an awesome idea to sell your car (or return it to the leasing agent) and save your car/insurance payments for debt pay off or savings. The average cost of car insurance in America is $1426 per year or $118.63 per month. Think of what that can do to debt if applied!
But there are some reasons to carefully consider not getting rid of your second car.
Why You Shouldn’t Get Rid of Your Second Car: Your City Is Ridiculously Big or Hard to Get Around
Depending on where you live, getting rid of your second car could be impractical. There are apparently cities out there where public transportation is ubiquitous and reliable – Phoenix is not one of them. I invite you to come to Phoenix and try to get around the whole city on a bike. I don’t think you’ll enjoy it.
Phoenix isn’t the only city where one car would be impractical for a family – some cities in Texas are the same, parts of California, and the suburbs outside of Denver are just ones I’ve experienced.
Just FYI: I don’t hate public transportation! In fact I wish all cities had amazing transport and I’d pay more in taxes for it – yes, i said it! I used public transportation when I lived in Washington state – in snow! I would do it again if it were feasible here.
Why You Shouldn’t Get Rid of Your Second Car: If You Work in Opposite Directions from Your Spouse
One car is not practical if you work in opposite directions from your spouse and have slightly different work hours. For instance, my husband works 7 am to 4 pm, and I worked 7 am to 6 pm in the opposite direction from him (I also worked in the direction traffic was going, yay). We both had to be at our jobs by 7 am – he, because he’s a teacher and children can’t watch themselves, and me because waiting any longer to leave would mean 2 hours of traffic instead of 1! Something else worth noting, is that if one of us was caught in a car accident with just one car in the household and we didn’t have a courtesy car on our insurance life wouldn’t be possible with no available cars. I remember a friend telling me after her car accident she got some legal help from Sacramento Car Accident Lawyers she couldn’t sing their praises enough and got her exactly what she deserved. She lived in a 2 car household and thankfully her partner was able to support her because they worked in the same direction and at similar enough times.In addition, my former job often required me to drive to places during the day. Sure, I could have begged coworkers for a ride, but sometimes I had to go alone. My work would not have paid for me to Uber, either.
Why You Shouldn’t Get Rid of Your Second Car: It’s Paid Off, You Use It, and It’s Not Worth Very Much
My husband and I jokingly refer to my car as “the beater” even though, in my opinion, it’s still a very nice car. But we call it that because it’s old, has a lot of miles, and is only worth $4k according to Kelley Blue Book.
Since my husband’s car is nicer and his gas costs more, we use my car on the weekends. We run errands, go on date nights, and shuttle the dog around to the dog park in my car. With no car payments and great gas mileage, it would be foolish to get rid of it – especially since we use it so much.
In some cases, getting rid of your car (either selling it or returning it if you’re leasing it) can be a good way to lower your fixed expenses. If you’re lucky, you may be able to put several thousands of dollars to your debt and save money on gas and insurance costs. Best case scenario: you pay off debt and don’t even miss the second car!
But giving up your second car isn’t practical for everyone. I’m not offering excuses for those of us who can’t give up a second car, but rather practical reasons why you should keep it. The worst case scenario is getting rid of your second car, paying off debt, then realizing you need another one, and being stuck getting one more expensive than your last car.
Is becoming a one-car family to get out of debt an option for you? Why or why not? Let me know in the comments!
Great article!! I always feel guilty for having two cars (one with a payment, ah!) My husband lives about 9 miles from work, so he tried Ubering one week. It was expensive! And not as reliable as we thought. He had a lot of drivers cancel his 6 am pick up. The bus to my work takes over two hours, how crazy! Four hours in a bus just isn’t worth it.
Having two vehicles is just too convenient.
Good article, makes me feel better about having two cars 🙂
Aww, thank you so much Steph! We are in the exact same boat – my husband has a car payment too, boo! But he has no other options to get to work, and like you found out, Ubers add up! And a 4 hour bus ride… noooo way!!! I would go crazy haha 🙂 Thank you so much for your nice comment!
We tried this for a week or two and it was a disaster haha. I typically go somewhere else to work because kids, and when I stayed at home my schedule was compromised. I love my family, but if I try to get work done around them it’s not going to go well.
Also our public transport is only good in certain neighborhoods here. I tried but couldn’t do it. That being said, I might just be spoiled. My husband grew up here and missy of his childhood he didn’t have a car in his family. He got around, but it was a lot of lost time between trains and buses and inclines.
Maybe someday our situation will change and we can downsize, but that day is not today lol.
Agreed! Even though I work from home now, there are times I need to do things during the day – and I’m sure it’s even more important if you have kids. You never know when you’re going to get the “your kid is sick come pick him up” call! If public transportation is great, like I’ve heard about NYC, DC, I think even Atlanta?, then it might be possible. But in a lot of cities, public transit is more of a time-suck than it’s worth.
A lot of really good points overall to consider for both sides, I just get tired of the default being “get rid of your car to get out of debt” mantra I see a lot out there, even if it’s from well-meaning people! 🙂
Cars are a big expense and we’ve talked about whether we should go down to one when we retire, but I just don’t see that happening for a few years. Too attached to my mobility.
Mobility is a really good point too! I know I love driving my car on clear, perfect weather days with the music on, rocking out and enjoying the great weather. Can’t exactly do that on public transportation 🙂
We’ve basically always been a one car household in a city with crappy PT! Works for us because I haaaate driving and parking. I much prefer PT and make it a priority to live and work near it.
That’s a really good point! If you can get close and then take even crummy PT, that would work to getting toward one car too! It definitely helps lower the “sucky” factor of taking bad PT if you live closer. 🙂
We did one car as a family when the children were small. He was second shift and that helped somewhat because most of my errands were done by the time he went to work. Sometimes I would have to go with children in tow to pick him up at 3 in the morning because I needed a car. So glad when we went back to a two car family!
It sounds like having one car would be possible with a second shift job, but it definitely doesn’t sound ideal!
Our family has come to a point, where the decision is 2, 3, or 4 cars. My son is away at college, without his car. It is has no tags, and is sitting in our back yard. My wife works on one side of town, and needs a car. I’m a physics teacher and my daughter attends my school. It’s on the other side of town. It isn’t necessary, but teens love to drive to school, and her job is near the school. Soccer will make her have a different schedule. When she gets her license, it would be so convenient for me if she had a car, and I didn’t have to drive her places.
Oh wow! It sounds like you’re probably saving money by not having to pay for insurance on your son’s car, but once your daughter starts driving… good luck! 🙂 My Mom also worked at my high school but, because of sports and other after school activities, my parents just gave me a hand-me-down car so that she didn’t have to drive back and forth to get me. Overall, it’s probably the best – teenagers have their own plans and schedules, and that way parents don’t have to be interrupted to pick the teen up whenever they’re done with after school sports/studying/etc. Great points!