Does it still make sense to own a car? Let’s find out…

So, I was recently figuring out whether it still makes sense to own a car in South Florida in a world where Uber & Lyft are so quick to give us a ride?

SPOILER ALERT: If you drive less than 9,000 miles per year, then sell your car. If you drive between 9,000-10,000 miles per year, then it is a wash. If you drive more than 10,000 miles a year, then keep it and use Dave Ramsey’s free car for life method.

For many of us who work from home or many seniors who live in the South Florida area, we may not drive as much as others who are driving to and from work. Many South Floridians lease their vehicles or grossly underuse their personal car. With car ownership comes many expenses; loan payment, oil changes, insurance, parking, tolls, repairs, new tires, etc.

But what if you ditched your car and put that money to work in the stock market or into a savings account which you used to pay for your Uber/Lyft rides? And once a month rent a car for a long weekend for your longer excursions.

So, let’s break it down. Keep in mind, these are general figures as sometimes traffic will be heavier or lighter, car prices are different for all and gas prices change often.

COSTS OF A LYFT AND CAR RENTAL

A rider in a Lyft going from Delray Beach to Fort Lauderdale Airport will pay around $40, including tip, for a regular Lyft ride (you can save more by choosing a “shared” ride). This comes to about 83 cents per mile for a 45-minute ride. The fare is heavily weighted toward the number of miles in a trip and the time is a small portion of the fare (about 26 cents a minute). There are potential other fees (platform fee, tolls, service fee, minimum fees, etc.) so, whereas the cost per mile and the time portion add up to about $1.09 per mile, the real figure will come in at around $1.14 per mile. At $1.14 per mile and driving of the course of a year to the tune of 9,000 miles, the total cost comes in at $10,260/year for your Lyft rides. Then, let’s say you want to travel once a month out of the area, so you want to rent a car. That will come in at around $120/month or $1,440/year. When added to your Lyft rides we come in at $11,700 total ground transportation costs. This is a high figure because if you are smart, you will use rewards programs offered by credit cards and internal company rewards; you will not pay as much because you will be getting dozens of free Lyft rides as well as several free days of car rentals. But that is a blog post for another day as I am a rewards junkie for which rehab is not needed.

So, how much does it cost to own and operate an average car in South Florida and is it less than the $11,700/year we found using Lyft and occasional car rentals?

COSTS OF OWNING AND OPERATING A CAR

As of this writing, the average cost per gallon of regular gas is $2.54. The average car gets 23.6 miles per gallon these days. The average car purchase would come in at around $30,000 and after 5 years will be worth approximately $20,000 ($167/month depreciation) — if you are fortunate. According to NerdWallet.com, the average person is spending $500/month on car loan payments. This seems excessive and in my example, I would say the monthly car payment would be around $350/month. Since we are assuming this is a new car, maintenance will be minimal for the first few years and will escalate over time; but let’s average it down to about $34/month over the full five years. Insurance in South Florida runs about $1,185 per year.

Many of these expenses can be mitigated or exaggerated depending upon one’s own personal circumstances. For example, one could buy a new Tesla and while the maintenance costs would be near zero and have no expense for gas and oil, it would have much higher acquisition costs. On the other side, one could buy a used car for $20,000, escaping some of the depreciation costs, but they will tend to have higher maintenance and fuel costs — especially if they purchase an SUV or truck. One may have perfect credit while another will have poor credit, greatly affecting their acquisition costs and insurance costs. The point of this exercise is to average things out.

The fuel costs come in at a little more than 39 cents per mile and over 9,000 miles during the year amounts to $3,543. Now we add in the monthly costs above (maintenance, depreciation, insurance, parking, tolls, cost of purchase, etc.) and we come to a final total of $11,340 per year.

CONCLUSION

If one is driving less than 9,000 miles per year, ditch the car, use Uber/Lyft and seek out the wide array of rewards programs available to drive down your costs even more. If you drive between 9,000-10,000 miles it is pretty much a wash financially. If you drive over 10,000 each year, then get a quality used fuel efficient, low maintenance car and pocket the savings over owning a gas guzzling, high maintenance truck. Use this link to get a free Lyft ride on me!

The question an ultra-low mileage per year car owner needs to ask themselves is do I want to get rid of the convenience and freedom car ownership provides by ditching the car to save money? Those savings could be put into an interest-bearing account or growing in a brokerage account, increasing one’s net worth while not having to deal with the hassles of car ownership. With a Lyft or Uber usually less than 5 minutes away, perhaps it may be a good idea to ditch the car or at least get rid of a second car which is being underutilized.

It’s still a tough decision as most of us saw buying our first car as a right of passage and gave us a strong sense of freedom. It may be hard emotionally to go without a car, but for many, it may be a great idea. If you are going to keep your car or are thinking of buying a new car, I strongly urge you to use Dave Ramsey’s free car for life method of car ownership.

How to Make a Pile of Cash on July 1st

100-day-challenge

Some of the best opportunities in life are the
ones that we create, and I wanted to share an
exciting program which will allow you to create
a pile of cash on July 1st.

Gary Ryan Blair, is about to launch a truly unique,
highly valuable (and very reasonably priced) program
that’s going to knock your socks off.

I’m so impressed with this program and the chance
for making big money on July 1st, and urge you to
give this a serious look.

Here are the cliff notes of what I have to share:

The FIRST HALF of the year is about to come to an
end and your clients results speak for themselves.

They’ve had SIX FULL MONTHS to showcase their stuff,
and if they are below target or unhappy with the
individual, team or company performance then they
need to step it up in the third quarter.

Gary believes that the importance of how you execute
the third quarter cannot be overstated, and expecting
to get better results from the same old behavior will
only succeed in perpetuating your current situation.

He has created the most extreme goal setting and
performance acceleration program on the planet and
it’s called  the 100 Day Challenge.

The message is so simple, so powerful and extremely
timely. And the best part is that it has proven to be
one of the highest converting programs ever launched.

It’s endorsed and promoted by almost every heavyweight
in the industry to include Brian Tracy, Ken Blanchard,
and John Assaraf to name just a few.

Click here to learn more, and get all the details.

I suggest you sign up to become an affiliate right now
so you can make huge commissions while helping your
clients to start the third quarter fast and focused.

Click here to get all of the details.

All the best,

Karl

Palm Beach County government proposes outrageously large budget that would be the biggest county government spending budget EVER

Graphic Credit: Palm Beach County Taxpayer Action Board
Graphic Credit: Palm Beach County Taxpayer Action Board

The Palm Beach County Commission will meet Tuesday, May 9, 2015 at 6:00 p.m. for their first budget workshop of the year. Local residents can watch the workshop via Channel 20. Under their proposal, the public may think county commissioners are returning to the heydays of the real estate bubble because they plan to spend $57.5 million more in the coming fiscal year. Will the public put a stop to it and demand the commission lower the millage rate to keep taxpayer spending in check? The county commission wants to spend an estimated $725 million of taxpayer money in the next fiscal year.

The $57.5 million increase is largely due to another increase to the bloated Palm Beach County Sheriff Department. Sheriff Ric Bradshaw is requesting an increase of $24 million to his budget, so his slice of the $725 million total taxpayer payout would be an eye-popping $553.7 million.

READ THE REST OF THE STORY!

Tony Robbins’ new book is out this morning. Get this book!

It has been 20 years since Tony Robbins has released a book and this morning, 11/18/2014, is the debut of his new book “MONEY Master the Game: 7 Simple Steps to Financial Freedom.

robbins money book

Tony Robbins' new book is out this morning. Get this book!

It has been 20 years since Tony Robbins has released a book and this morning, 11/18/2014, is the debut of his new book “MONEY Master the Game: 7 Simple Steps to Financial Freedom.

robbins money book

5970 SW 18th ST #331, Boca Raton, Florida 33433 888.394.0908 Fax: 561.208.6545 www.KARLDICKEY.org NEWS RELEASE FOR RELEASE ON: April 1, 2010 Contact: Karl Dickey Tel: 561.237.5586 Email: karl@karldickey.org PALM BEACH COUNTY COMMISSION GIVES BILLIONAIRE’S PET PROJECT $800,000 Commissioners raid Gramercy Park Community Center and Science Museum fund Boca Raton, FL – With no debate during the March 23, 2010 county commission meeting our county commissioners redirected $800,000 to the John and Tussi Kluge Center for Creative Education. The vote was 7-0 which meant every commissioner on the dais was in favor of this subsidy. Karl Dickey, candidate for Palm Beach County Commission said today, “Perhaps they felt sorry for Mr. Kluge who saw his net worth drop from $9B to $6B this past year so they felt the need to fill the gap for his project while diverting funds from their intended purposes. Public bonds are voted on by the public for a specific purpose and shouldn’t be raided as we see time and again by politicians for different purposes. I thought we had at least two fiscal conservatives on the Board, apparently not. Unfortunately for Palm Beach County taxpayers this is not an April Fool’s Day joke.” John Kluge can be found on the Forbes World’s Billionaires list and is a resident on the island of Palm Beach. Last year Kluge gave $400 million to Columbia University which begs the question, if he can afford to give Columbia $400 million, certainly he could find $800,000 to “fill the gap” of an education center that bears his name. Karl Dickey applauds Mr. Kluge’s financial success and his great philanthropy, simply not at the expense to the taxpayers of Palm Beach County. The funds were derived from the 2002 $50 Million Recreational and Cultural Facilities Bond which had a specific project list designated by the county commission at the time. Much of the public bond money was to be used for the expansion of the South Florida Science Museum. # # # paid for and approved by karl dickey, libertarian for palm beach county commission, district 4

Source: http://karldickey.org/press/20100401%20Palm%20Beach%20County%20Commission%20gives%20billionaires%20$800k.htm

Commissioners raid Gramercy Park Community Center and Science Museum fund

Boca Raton, FL – With no debate during the March 23, 2010 county commission meeting our county commissioners redirected $800,000 to the John and Tussi Kluge Center for Creative Education. The vote was 7-0 which meant every commissioner on the dais was in favor of this subsidy.

Karl Dickey, candidate for Palm Beach County Commission said today, “Perhaps they felt sorry for Mr. Kluge who saw his net worth drop from $9B to $6B this past year so they felt the need to fill the gap for his project while diverting funds from their intended purposes. Public bonds are voted on by the public for a specific purpose and shouldn’t be raided as we see time and again by politicians for different purposes. I thought we had at least two fiscal conservatives on the Board, apparently not. Unfortunately for Palm Beach County taxpayers this is not an April Fool’s Day joke.”

John Kluge can be found on the Forbes World’s Billionaires list and is a resident on the island of Palm Beach. Last year Kluge gave $400 million to Columbia University which begs the question, if he can afford to give Columbia $400 million, certainly he could find $800,000 to “fill the gap” of an education center that bears his name.

Karl Dickey applauds Mr. Kluge’s financial success and his great philanthropy, simply not at the expense to the taxpayers of Palm Beach County.

The funds were derived from the 2002 $50 Million Recreational and Cultural Facilities Bond which had a specific project list designated by the county commission at the time. Much of the public bond money was to be used for the expansion of the South Florida Science Museum.

5970 SW 18th ST #331, Boca Raton, Florida 33433 888.394.0908 Fax: 561.208.6545 www.KARLDICKEY.org NEWS RELEASE FOR RELEASE ON: April 1, 2010 Contact: Karl Dickey Tel: 561.237.5586 Email: karl@karldickey.org PALM BEACH COUNTY COMMISSION GIVES BILLIONAIRE'S PET PROJECT $800,000 Commissioners raid Gramercy Park Community Center and Science Museum fund Boca Raton, FL – With no debate during the March 23, 2010 county commission meeting our county commissioners redirected $800,000 to the John and Tussi Kluge Center for Creative Education. The vote was 7-0 which meant every commissioner on the dais was in favor of this subsidy. Karl Dickey, candidate for Palm Beach County Commission said today, “Perhaps they felt sorry for Mr. Kluge who saw his net worth drop from $9B to $6B this past year so they felt the need to fill the gap for his project while diverting funds from their intended purposes. Public bonds are voted on by the public for a specific purpose and shouldn't be raided as we see time and again by politicians for different purposes. I thought we had at least two fiscal conservatives on the Board, apparently not. Unfortunately for Palm Beach County taxpayers this is not an April Fool's Day joke.” John Kluge can be found on the Forbes World's Billionaires list and is a resident on the island of Palm Beach. Last year Kluge gave $400 million to Columbia University which begs the question, if he can afford to give Columbia $400 million, certainly he could find $800,000 to “fill the gap” of an education center that bears his name. Karl Dickey applauds Mr. Kluge's financial success and his great philanthropy, simply not at the expense to the taxpayers of Palm Beach County. The funds were derived from the 2002 $50 Million Recreational and Cultural Facilities Bond which had a specific project list designated by the county commission at the time. Much of the public bond money was to be used for the expansion of the South Florida Science Museum. # # # paid for and approved by karl dickey, libertarian for palm beach county commission, district 4

Source: http://karldickey.org/press/20100401%20Palm%20Beach%20County%20Commission%20gives%20billionaires%20$800k.htm

Commissioners raid Gramercy Park Community Center and Science Museum fund

Boca Raton, FL – With no debate during the March 23, 2010 county commission meeting our county commissioners redirected $800,000 to the John and Tussi Kluge Center for Creative Education. The vote was 7-0 which meant every commissioner on the dais was in favor of this subsidy.

Karl Dickey, candidate for Palm Beach County Commission said today, “Perhaps they felt sorry for Mr. Kluge who saw his net worth drop from $9B to $6B this past year so they felt the need to fill the gap for his project while diverting funds from their intended purposes. Public bonds are voted on by the public for a specific purpose and shouldn’t be raided as we see time and again by politicians for different purposes. I thought we had at least two fiscal conservatives on the Board, apparently not. Unfortunately for Palm Beach County taxpayers this is not an April Fool’s Day joke.”

John Kluge can be found on the Forbes World’s Billionaires list and is a resident on the island of Palm Beach. Last year Kluge gave $400 million to Columbia University which begs the question, if he can afford to give Columbia $400 million, certainly he could find $800,000 to “fill the gap” of an education center that bears his name.

Karl Dickey applauds Mr. Kluge’s financial success and his great philanthropy, simply not at the expense to the taxpayers of Palm Beach County.

The funds were derived from the 2002 $50 Million Recreational and Cultural Facilities Bond which had a specific project list designated by the county commission at the time. Much of the public bond money was to be used for the expansion of the South Florida Science Museum.