Most baby boomers couldn’t envision their early adult years without a car. However, times are changing and younger commuters are leading the way.
According to a recent study, millennials – those born between 1983 and 2000 – are driving significantly less than older Americans.
Today, there are many options to conventional car ownership, but it’s important to match solutions and their specific costs to your needs. Here’s a road map for exploring what’s right for you.
Start with the cost of driving. If you already drive and budget carefully, you will have an idea of what driving costs you can incur each year in financing, fuel, fees, maintenance and insurance.
Would leasing be cheaper? The buy-versus-lease question has evolved over the years and many people have strong opinions about which option is better. . Many people like leasing because they can often lease a more expensive car than they could afford to buy with no down payment. But failing to observe lease restrictions can cost plenty.
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Consider ride- or car-sharing. A decade ago, if you asked someone about ride-sharing or car-sharing, most would assume you were talking about carpooling. Car-sharers now join a service that allows them to reserve and rent a vehicle in their neighborhood for a few hours or extended periods.
Look to your employer. Commuter tax benefits allow you and your employer to save. If you plan to drive to work regularly, check out parking subsidies. If you combine driving and mass transit, check both parking and public bus or rail subsidies.
Telecommute. Many employers looking to reduce commercial rents and onsite employee costs are increasingly relying on telecommuting options for their workers. Telecommuting isn’t for everyone, but evaluate your employer’s program, talk to fellow workers about all the pluses and minuses and see if it’s a good fit for you in terms of time use and vehicle cost.
