If you’ve ever found yourself staring out the window of a city bus, watching cars zip by and wondering, “Should I just buy a car already?”—you’re not alone.

For many Americans, especially those who remember when gas was under a buck and parallel parking was a badge of honor, the car vs. public transit debate is as classic as apple pie.

But in today’s world of rising costs and ever-changing cityscapes, the answer isn’t as simple as it used to be.

Let’s take a closer look at the real costs, the time saved, and the cities where owning a car is either a no-brainer or a wallet-buster.

Whether you’re a retiree considering downsizing to one vehicle, a city dweller debating your next move, or just someone who loves a good road trip, The GrayVine is here to help you steer through the facts.

The True Cost of Car Ownership
First, let’s talk dollars and sense. According to a recent study by Point2Homes, the average American spends a whopping $8,137 per year on car ownership.

That includes fuel, insurance, maintenance, and parking. For homeowners, that’s about 8% of annual income. For renters, it’s a staggering 15%. Ouch!

Car ownership in the US costs on average around $8,137 per year, a significant portion of income—especially for renters, who may spend up to 15% of their income on a vehicle compared to 8% for homeowners. Image source: Daryan Shamkhali / Unsplash.

Compare that to public transit, which averages less than $1,000 per year.

That’s a difference of over $7,000—enough for a couple of nice vacations, a home improvement project, or a serious boost to your retirement fund.

Andra Hopulele, the study’s author, puts it plainly, “The trade-off is clear: significant cost savings versus modest time gains. For budget-conscious commuters, especially renters, public transit can offer meaningful financial relief.”

Where Ditching the Car Pays Off Big
So, where does it make the most sense to hang up your car keys and embrace the bus pass? Unsurprisingly, some of America’s largest and most congested cities top the list. Here’s where you’ll save the most by going car-free:

• San Francisco: $10,188 saved per year
• New York: $9,538 saved per year
• San Diego: $8,676 saved per year
• Los Angeles: $8,436 saved per year
• Boston: $8,195 saved per year
• Washington, DC: $8,078 saved per year
• Philadelphia: $7,983 saved per year
• Jacksonville, FL: $7,662 saved per year
• San Jose, CA: $7,488 saved per year
• Chicago: $7,362 saved per year

If you live in one of these cities, public transit isn’t just a way to avoid traffic—it’s a serious money-saver. And with many of these cities investing in better buses, subways, and commuter trains, the experience is better than ever.

But What About Your Time?
Of course, time is the one thing you can’t buy back. For some, the convenience and speed of driving outweigh the cost.

The same study crunched the numbers on how much time you actually save by driving instead of taking public transit. Here are the top cities where owning a car gives you the biggest time advantage:

• Las Vegas: 52.3 minutes saved per day (that’s 9.1 days per year!)
• San Jose, CA: 50.8 minutes per day
• El Paso, TX: 46.8 minutes per day
• Fort Worth, TX: 44.4 minutes per day
• San Antonio, TX: 42.3 minutes per day
• Phoenix, AZ: 41.3 minutes per day
• Detroit, MI: 40.5 minutes per day
• Indianapolis, IN: 39.2 minutes per day
• San Diego, CA: 38.9 minutes per day
• Columbus, OH: 37.3 minutes per day

Using public transport instead can save commuters more than $7,000 a year in several major cities, with the biggest average annual savings found in San Francisco, New York, and San Diego. Image source: Sergey Zolkin / Unsplash.

If you’re still working, volunteering, or just value your free time, those extra minutes can add up—especially if you’re juggling grandkids, hobbies, or a busy social calendar.

The Hidden Costs and Benefits
But let’s not forget the intangibles. Owning a car means freedom: spontaneous road trips, visits to friends and family, and the ability to run errands on your own schedule.

For many older adults, a car is more than just transportation—it’s independence.

On the flip side, public transit can offer its own perks: no parking headaches, less stress in traffic, and a chance to read, relax, or even make new friends on your daily ride. Plus, it’s a greener choice, which is something many of us care about for our grandkids’ future.

Related story: Uber’s new ride option could change your commute—and save you money

Questions to Ask Yourself Before Buying (or Selling) a Car

• How often do you really drive? If your car spends more time in the garage than on the road, it might be time to reconsider.
• What’s the state of public transit in your city? Some cities have world-class systems; others, not so much.
• Do you have mobility needs that make driving essential? For some, a car is a must for medical appointments or accessibility.
• Are you planning to travel or relocate soon? If so, flexibility might be more important than ownership.
• How’s your budget? Could that $7,000+ be better spent elsewhere?

Source: CNBC / Youtube.​

Tips for Making the Most of Your Choice

• If you keep your car: Shop around for insurance, keep up with maintenance, and consider carpooling to cut costs.
• If you go car-free: Explore senior discounts on transit, look into ride-sharing apps, and get to know your city’s transit routes.

Read next: Retirees rejoice: Eliminate these 9 costs and pocket an extra $29,000 annually!

Key Takeaways

• Car ownership in the US costs on average around $8,137 per year, a significant portion of income—especially for renters, who may spend up to 15% of their income on a vehicle compared to 8% for homeowners.
• Using public transport instead can save commuters more than $7,000 a year in several major cities, with the biggest average annual savings found in San Francisco, New York, and San Diego.
• While public transport is much cheaper, owning a car tends to save people substantial time on their daily commutes in many US cities, with some places seeing time savings of up to 52 minutes per day by driving.
• The decision between owning a car and relying on public transport comes down to weighing meaningful financial relief (especially beneficial for renters and budget-conscious households) against the convenience and time savings that come with car ownership.

Have you recently made the switch to public transit, or are you a die-hard driver? What’s your experience been like in your city? Do you have tips for saving money or time on your commute? Share your stories and advice in the comments below!

 

[Maxineb]

Oh boy these articles by experts

I pay $70 a month for insurance that’s it. The activities you describe are for very healthy seniors ….so the more you drive the more it costs.

I’d feel like I was in prison without my car. Did you ever get in a crowded train or bus with having to get germs cuz you’re that close? No comparison to your own car. Did you ever JUST miss the bus or the train?

So again this article to me has no value. I don’t know anyone that would give up their car to take a bus. Unless they needed the money from the car ….. again perhaps poor planning