Access to your own car in college can be excellent for attending multiple classes, getting across campus quickly, getting to a job, and making friends. Cars can make independent life much easier in most college towns, as public or college transportation can be unreliable. However, cars have significant costs that can’t be ignored, especially if you’re having trouble affording college or other expenses. If you’re unsure if owning a car is worth it, you’ll need to evaluate your income, expenses, and the costs that car ownership usually entails. You may also want to consider alternative transportation options for a fully informed decision.
When considering a vehicle for college, you'll need to decide between buying and leasing. Buying a car means you'll own the asset outright eventually, can modify it as needed, and won't have any mileage restrictions – perfect for those long drives home during breaks or road trips with friends. Leasing, on the other hand, often means lower monthly payments, warranty coverage throughout the lease term, and the ability to switch to a new car every few years. However, leases come with mileage caps and potential wear-and-tear charges that could be problematic for a college student. Whether you choose to buy or lease, don't feel pressured to get a brand new vehicle.
Used cars can offer exceptional value, especially since many modern vehicles can easily last well over 100,000 miles with proper maintenance. Look for certified pre-owned vehicles from reputable dealers or well-maintained used cars from private sellers – just be sure to have a trusted mechanic inspect any used vehicle before purchasing.
Car Payments
It’s no small feat to pay for a car, especially with limited income while in college. New cars can cost hundreds of dollars a month. You can save money on purchasing used cars or inheriting a hand-me-down from friends or family, but you will still need to pay for gas, insurance, and regular maintenance. In your budget, factor in car payments, insurance, and maintenance costs to get a complete idea of how much you can afford.
Car Insurance
In addition to car payments, car insurance is a legal requirement for all drivers. Car insurance works to provide coverage in case of damage, particularly from car accidents. Anyone can get into a car accident anytime, so insurance can compensate for damages even when the car owner can’t afford it. Car insurance is usually paid through a monthly, biannual, or annual premium. Car insurance rates will vary depending on location, driving record, and driving experience, but on average, it can cost $50 (for minimum coverage) to $200 (maximum coverage) monthly. It may not seem like a lot on its own, but combined with gas, maintenance, and car payments, it adds up.
Car Maintenance
Cars need routine maintenance. The most frequent cost to run a vehicle is, of course, gas. Gas prices fluctuate wildly, but they can range from $2 to $5 a gallon, depending on location. Depending on how often you use your car, you can expect to pay $100-$200 monthly on gas alone! Beyond gas needs, your car will need frequent oil changes, tire rotation and repair, brake replacements, and more. Repairs can cost up to thousands of dollars if something goes wrong with your car.
Traffic Tickets
A rarer type of expense associated with cars is traffic tickets. Police officers issue traffic tickets for traffic violations. College students aren’t as experienced behind the wheel, and it can be quite easy to accidentally park in the wrong spot or speed. Depending on the violation and location, traffic tickets can be as low as $10 to as high as $3,000. On average, however, tickets will cost you around $50-$250. Breaking the law has a cost!
Car Accidents and Repairs
While practicing defensive driving skills can lower your chances of an accident, you can’t entirely prevent an accident from occurring due to the negligence of others. Further, a used car may be more prone to breaking down, increasing the risk of obstructing traffic or causing accidents. If you get into an accident, it can cost a lot of money to repair a car, get medical attention, pay higher insurance premiums, and deal with legal fees. Car insurance will cover many of these costs but may not cover them all. Car insurance denials can make things even more confusing during hectic college life. While pursuing litigation through law firms like Rosenfeld Injury Lawyers may be an excellent idea for recovering costs, that can take time, too.
Income vs Expenses
Car expenses can add up, but you can swing college life and car ownership when you budget correctly. If your parents give you an allowance or you have a job, add up all your monthly earnings and subtract your monthly expenses. Ensure you include necessities like food and rent if you’re paying for those things out of pocket. You’ll ideally want to save extra money per month for leisure or emergencies, too. You typically won’t have to worry about student loan payments while you’re in school, but once you leave, that will be another monthly expense to consider.
Vehicle Alternatives
While cars are convenient luxuries, especially in college, you should look into other transportation methods before heading to the car dealer. Is there a convenient way to get around your campus, such as public or college transportation? Do you have friends or roommates you can carpool with for lower costs per month? Is walking or biking an option? You can also invest in a cheaper vehicle, such as a motorbike, scooter, or electric bike, to save on costs.
College Life Isn't Cheap!
College life isn't cheap, and while cars are advantageous in any independent living situation, they come with many costs. Maintenance, gas, insurance, and car payments can add up to hundreds of dollars per month. Traffic tickets and car accidents can add even more expenses. If you're considering a car, budget wisely to ensure you can afford it. Consider other options, like biking, carpooling, or public transportation, before committing to a vehicle.
This reminds me of my college friend Mike, who bought a used Honda Civic for $3,000 his sophomore year. While it wasn't the flashiest car on campus – with its mismatched door and slightly squeaky brakes – it reliably got him through three years of college, countless pizza runs, and even a cross-country road trip after graduation. The key was that he bought within his means and always kept up with basic maintenance, proving that a modest used car can be just as valuable as a new one during the college years.
