Air Pollution Impacts on Economy: Internal Costs of Driving

In U.S. and Canada, 15 to 20 percent of household budgets go directly to the out-of-pocket or internal costs consumed by cars. That means that about a sixth of each American household's budget goes towards cars, which amounts to more than what is spent on food and places only second to housing costs!

Another way to look at the out-of-pocket costs of driving is through the amount of work time it takes to pay for a car. In 1996, the average car payment for a new car was $400. If you make roughly $10.00 an hour, you would have to work full time for at least one week each month just to pay for your car payment. And that payment doesn't even include gas, insurance, repairs, normal maintenance, and the list goes on!

Based on American Automobile Association (AAA) figures, each median family pays a fixed cost of $14.96 per day to own a new car. Keep in mind that the fixed cost stays the same even if the car is frequently driven or frequently parked. Also keep in mind that 60% of that cost is for depreciation of the car. Makes you think a little harder about all of the available choices you have when it comes to transportation, doesn't it? A lot of these costs go unnoticed and ignored when thinking about out-of-pocket costs because drivers tend to consider only operating or variable costs and overlook ownership or fixed costs.

If these out-of-pocket expenses weren't enough to get you thinking about choices, well then think about those costs that are not monetary, such as time you spend driving, your risk of crashing and the overall stress you get from driving. The impacts of driving on yourself and your wallet are large and abundant when you really look at the whole picture. The good news is that owning a car is not your only option to getting around town. When you explore all of your choices and weigh the pros, cons and costs of each one, then hopefully you will find one that works for you, and your budget!

Would you like to know how much driving is costing you? Use this easy worksheet to calculate your costs.

All statistics were taken from "Chapter 9: Not a Cheap Date: The Real Cost of Cars" in the book Divorce Your Car: ending the love affair with the automobile by Katie Alvord. For more information on this highly informative book about society's relationship with cars, visit: http://www.newsociety.com/divfs.html