How Living With One Car Saves the Average Couple $9,170 a Year
The average American household spends $12,182 per year on each vehicle according to AAA’s 2024 driving cost survey — and most two-car couples could cut one without changing their commute. When you subtract the modest costs of occasional rideshares and a transit pass, the net savings land at roughly $9,170 a year — enough to max out an IRA or wipe out $27,500 in student loans over three years. It’s one of the biggest single lifestyle changes you can make, and the math isn’t even close.
Where the $9,170 Comes From
AAA’s figure breaks down into six buckets: depreciation ($3,498), fuel ($2,566), insurance ($1,893), maintenance ($1,505), financing ($907), and registration and taxes ($813). Drop the second car and most of those costs vanish entirely. A Bureau of Labor Statistics analysis of one-car households shows they typically add about $250/month in rideshare, rental, and transit costs — roughly $3,012 a year. That leaves $9,170 in net annual savings. For context, that’s more than the median American puts into their 401(k) each year ($5,460 according to Vanguard’s 2024 How America Saves report). In other words, selling one car could nearly double your retirement contribution rate without earning a single extra dollar. Depreciation alone — the largest chunk at $3,498 — is money that evaporates every year whether you drive 500 miles or 15,000.
The 10-Year Compound Effect
Redirect that $9,170 into an index fund earning the S&P 500’s historical average of 10% annually, and after 10 years you’re sitting on roughly $160,000. After 20 years, that climbs past $575,000. The Federal Reserve’s 2023 Survey of Consumer Finances found that the median retirement balance for households aged 35–44 is just $60,000 — so one fewer car could nearly triple that in a decade. This isn’t theoretical math, either. A Vanguard Total Stock Market Index Fund (VTSAX) returned an annualized 10.4% over the 20 years ending December 2024. If you’re wondering how to actually capture those savings instead of letting them evaporate into takeout and impulse purchases, automating the freed-up cash into a brokerage account is the most reliable method. Set up a recurring transfer on the day you would have made the car payment, and the money moves before you can spend it.
Who Can Actually Pull This Off
Going to one car isn’t for everyone, but the numbers say it works for more households than you’d expect. Census Bureau data shows 45% of U.S. workers commute fewer than 20 minutes — short enough for biking, transit, or staggered schedules. Remote work pushes the math even further: Pew Research found that 35% of workers with remote-capable jobs work from home full time as of early 2024. If one partner is remote and the other drives, you already know what keeping that second car truly costs. Even suburban households can make it work with the right substitutes. A used e-bike ($800–$1,500 one-time) covers most errands within 5–10 miles, and a car rental runs $40–$60/day for the occasional weekend trip that public transit can’t handle. When you do the math on 4–6 rental days per month, you’re still spending a fraction of what permanent ownership costs.
The Hidden Bonus: Less Maintenance Stress
Owning fewer vehicles doesn’t just save money — it saves time and decision fatigue. The average car owner spends 7.5 hours per year on routine maintenance appointments according to J.D. Power’s 2024 Customer Service Index study. Add in insurance shopping, registration renewals, tire rotations, and the occasional fender-bender claim, and you’re losing a full weekend a year to admin for each car you own. One car means one set of oil changes, one insurance policy to review, one registration to renew. That reclaimed time compounds just like the dollars do, and most people underestimate how much mental bandwidth a second vehicle quietly consumes. There’s also the garage or driveway space you reclaim — suburban couples who drop a car often convert the freed-up parking spot into a home gym or workshop, adding lifestyle value on top of the financial gains.
A 30-Day Test Before You Commit
Park the second car and don’t touch it for 30 days. Track every time you would have used it and what you did instead — rideshare, bike, borrow, or skip the trip entirely. Most couples who try this discover that the inconvenience is smaller than expected and the savings are larger than projected. After the trial, tally your workaround costs against one month of the car’s expenses (insurance alone averages $158/month per NAIC data). If the gap is positive, sell the car and redirect the difference to a high-yield savings account or brokerage. Even if you net only $6,000 instead of $9,170, that’s still enough to fund a Roth IRA at 86% of its annual contribution limit — a life-changing reallocation from a single lifestyle tweak.
Want to see what $9,170 a year grows to at your expected return?
Frequently Asked Questions
How much does the average second car cost per year?
AAA’s 2024 Your Driving Costs study puts the average annual cost of owning and operating a vehicle at $12,182. After accounting for roughly $3,012 in alternative transportation expenses, eliminating a second car saves about $9,170 net per year.
Can a one-car household work in the suburbs?
Yes, especially if one partner works remotely. An e-bike ($800–$1,500) handles most errands within 5–10 miles, and occasional car rentals fill the gaps at $40–$60/day — far less than the $1,015/month cost of a second car.
What should I do with the savings from selling a car?
Redirect the monthly savings automatically into a high-yield savings account or low-cost index fund. Investing $764/month (the $9,170 annual savings) at a 10% average return grows to roughly $160,000 in 10 years.
Does going to one car affect insurance rates on the remaining vehicle?
Typically yes — removing a vehicle from your policy reduces your overall premium. You may also qualify for a low-mileage discount on the remaining car if your total household driving drops, saving an additional 5–15% on premiums according to the Insurance Information Institute.
Thinking about simplifying your transportation costs? Explore more ways to cut major expenses in our guide to recurring costs you’re probably underestimating.
Photo by Josh Nezon on Unsplash
