4 Reasons I'm Keeping My Car, Even Though I Work Remotely

Owning a car isn't cheap, and if you're trying to cut your costs to improve your personal finances, getting rid of yours might be one way to get ahead. I've become a fully remote freelance worker in the last few years. You might assume that I no longer need a car, but that isn't the case. Here's why I'm happy to still own a vehicle.

1. My car is paid off

If you're making payments on an auto loan, they likely make up a significant part of your monthly budget. Edmunds reported that the average payment for a new car hit $730 in the first quarter of 2023 -- a record high. But this is only an average. You could be paying more or less (especially if you bought your car used).

When I did have a car payment, it was thankfully a little less than half of the current average, but it still represented a solid chunk of money leaving my checking account every month. I made my last car payment almost a decade ago, and so my cost to own the car has come down significantly.

2. My insurance costs are low

I might not have a car payment anymore, but it's still not free to own a car. I have to pay for maintenance costs and gas, of course. I also keep an auto insurance policy on the car, but I've been able to save money there, too.

The car is old and less costly to insure, but I also completed a driver education course that saves me 10% on my premiums. And I have a renters insurance policy through the same insurer -- bundling policies can often save you money.

3. I take a lot of road trips

Beyond the lower costs of ownership that come from having an old paid-off car, I'm hanging onto my vehicle because it enables me to travel cheaply and easily. I don't fly very often (an overseas vacation earlier this year was my first flight in almost seven years), and I tend to take a lot of road trip vacations instead.

Sure, I could rent a car for these excursions, but I'd have to pay for the privilege. And I certainly wouldn't feel at ease driving a rental for a long distance on unfamiliar terrain. My car is excellent for road trips, as it gets great gas mileage and is comfortable to drive.

4. Public transportation isn't a great fit for my schedule

I may work remotely, but this doesn't mean I don't have places to go besides work. In any given week, I might have a doctor's appointment or other errands, and I do a weekly grocery run as well. My city isn't large enough to have an especially robust public transportation network like many big cities do, but in a pinch, I might be able to take a bus somewhere. However, this would mean adding extra time to my errands to accommodate time spent waiting for transportation. And since time is literally money when you're self-employed, this would end up costing me more than just the bus fare.

Giving up the financial commitment of owning a car could be a great way to significantly increase the amount of money you have free to save, pay down debt, or spend on other things. But it's worth taking the time to evaluate your needs and see whether it might be worth swapping a new car for a cheaper used one, or even just hanging onto an older vehicle you've paid off.