Sell Your Car & Get Around Just Fine: Shaia's Story

When my friend, Shaia, bet me that she could save money by selling her car and still manage to get around I took the bet. Living in an urban sprawl, I didn't see how she could do it. But she did. And here's why I lost the bet.

Shaia Looked Outside the Box

Taking a broad look at the problem of rising fuel prices, Shia considered not only how much she's paying for driving her car but why she's driving it. The car got her to work and back, it made shopping easy, it was there for her on weekends when she went hiking on Mount Baker. Okay... so her car payment, insurance and gas prices were a derivative of a her geographic location. But what if she changed it?

Shaia Compared Apples to Oranges

To determine the true cost of her living arrangement, Shia added up her monthly fuel costs ($110) and car payment with insurance ($450) and rent ($950), which totaled $1,510. She speculated that if she could rent an apartment within walking distance of her job and in the vicinity of a shopping center for less than $1,510 she would come out the winner. But there were factors to consider first.

Shaia Considered Her Lease & Car Loan Situation

Shaia lived in an apartment complex that required 30 days' notice before leaving, which made things easy. As to her car payments, she was close to the end of her four year loan. Unlike someone who might be upside-down on his loan, she only needed to pay off a five month balance then wait for the lender to release the title, after which she could sell her car. Checking the Kelly Blue Book website she compared the trade-in and personal-sale values of her car and decided that it was worth the effort to sell it herself. The thought of cashing in her car for between $15,000 to $17,000 made the proposition well worthwhile in her eyes.

Shaia's New Home

Bellevue and Redmond, Washington, are very bicycle and pedestrian friendly, especially as you near the areas where the two cities meet. Shaia found a rental complex across from a small but popular mall, with a supermarket and fantastic food court. Work was only 1.5 miles down the busy road, and there were plenty of buses. The area was a little noisy in the day, but it quieted at night. And the selling point-the rent was $895 a month, though for a smaller apartment than Shaia was used to.

Shaia's Savings

Shaia decided to make the switch. She used her savings account to make the last five car payments on her loan ($1,875) so she could receive the title. She then advertised with local newspapers and sold her vehicle in 3 weeks. Her monthly expenses dropped by $615 a month, and the sale of her car left her with $12,875 to invest in any way she wanted (after she had returned $1,875 to her savings account). The cost of moving and advertising her car came to less than $500, an investment Shaia seems to consider worthwhile. And now, on weekends she is dependent on her friends, but it doesn't look like she minds in the least. I actually think there's a little I-told-you-so behind her grin some of the time.

More from This Contributor:

10 Steps to Selling Your Car Quickly & Safely

First Person: Cutting Back on Commuting Costs

7 Car Buying Tips for Young First-Time Buyers