The cost of living is forever on the rise, and nowhere is the pinch more noticeable than in New York City — especially Manhattan.
Everything is expensive, from rent prices to concert tickets to bottled water, and sometimes it feels like you’re always spending money. Not exempt from high costs are vehicle expenses, like registration, insurance, parking, gas, maintenance and repairs.
With these costs being so high, you may be trying to decide whether to junk a car, but not sure whether you can afford it. To help make that decision, let’s look at some sample data:
- Registering a passenger vehicle in Manhattan can cost anywhere from $26 to $140 for a two year registration. That’s not including a $30 vehicle use tax and an additional $50 Metropolitan Commuter Transportation District fee (both for two years). That means registration alone can cost up to $150 per year!
- Insurance premiums vary widely based on a number of factors, but according to one discount insurance website, the average cost of auto insurance in New York state is $140 per month. That’s $1680 a year!
- If you are one of the lucky ones who manages to get a monthly space in a garage in Manhattan, odds are you can expect to pay at least $170 a month, which can balloon to over $200 depending on where the garage is. Tack on at least $2040 more per year.
- As of right now, the average cost per gallon of gas in NYC is about $3.70 per gallon. If your car has a 12 gallon tank that needs to be filled even twice a month, expect to pay another $88 per month, which annualizes to about $1056 over the course of a year.
- Maintenance and repairs are unpredictable by nature, so they’re difficult to estimate, but how about if we ballpark them collectively at $1000 per year? Sounds fair, right?
Add the whole thing up, and we’re talking an ownership cost of right around $6000 each year! That’s a whole bunch of money to be pouring down the drain on a car, especially one that may be junk.
If the alternative is to junk a car for top dollar cash payout, then I ask you again: can you afford NOT to junk a car?