Does it worth to keep a car? Based on Brazilian expenses

[Blacksheep]

I'm asking myself lately if its worth to keep my car. Its already paid, so I have those anually expenses here in Brazil:

Government taxes = R$2.000,00
Insurance = R$1.500,00
Annual Maintenance = R$800,00

So I have to save R$350 approximately each month so I can pay for those things each year.

I spend with gas something about R$100 to R$150 if I do not drive too much (as I work home office, I just use it to go out, market and datings).

Also, I will have new expenses as I'm with it for 4 years... Soon I will have to change the tires for example.

I'm earning a fixed amount now of R$3.000,00 and I can make something about R$1.000,00 with my freelancer's jobs (gonna raise this amount).

So the only reason to keep it is that I have more comfort to go out, go to market and when I date some woman. But most of the things I can use Uber, even for date.

So, what do you guys think about owning a car. Is it a good investment? I know in another countries there are way few taxes compared to Brazil. Here they stole a huge amount of money every year with those stupid taxes.

Would it be better if I cut off this expense from my list and use the money of that car to save it or invest?

 

[Lookatu]

If you're in a urban environment or in city center, I would personally get rid of it. As you've outlined, there's really no great reason to keep it. You can always buy another one later if your life situation changes.

I always advocate for this for my friends living in the heart of a major city.

Also in some cities, you have to worry about expensive parking tickets, accidents, vandalism, snow routes, etc.

The suburbs are the only areas where you actually need a car.

 

[Blacksheep]

If you're in a urban environment or in city center, I would personally get rid of it. As you've outlined, there's really no great reason to keep it. You can always buy another one later if your life situation changes.

I always advocate for this for my friends living in the heart of a major city.

Also in some cities, you have to worry about expensive parking tickets, accidents, vandalism, snow routes, etc.

The suburbs are the only areas where you actually need a car.

My town have a population of 100.000

Here there is 2 apps similar to uber that works pretty fine. I have only to be careful if I go out late at night and need to go back home. But thats not a big problem.

Also, for datings... Can be even better as I will be far away from gold diggers.

I have a plan to invest that money on real state... And based on 3 assets I simulated, I could make R$563,00 on dividends each month. It pays my rent and I dont have to save the R$350,00 monthly for my expenses with the car.

So even spending 350 each month with uber would worth more than keeping my car, as the price is always lowing down.

 

[Alvafe]

depend on your town really, I will explain in english since its a english forum

but its all about not only cost, but confort, a simple example, where I live having a car is a must, forget uber or taxi, end game is cheaper to own one, daily I spend less in gas then I would using a bus, plus the time spend, work - home travels is around 10-15 min bus take over a hour on a good day, dating course you could say a uber is good enough, but remember gold diggers or not having a car is game changing for a lot of woman and if they are younger easier is to impress using a car, and don't even need to be a good car

there is also the cost of buying one to selling one, the basic one today is around what? 50-70k lame ass cars, if you already have it better to keep it, because to sell one you will waste more then half that amount, plus you also need to count for any possible emergency who can come up and you need to go fast.

now for how much you are getting paid you are pretty much one of the guys who are paid well getting this much and still having a car I could save around 2,5 month, if you really want to invest on real state and are not in rush try to get early buys on things who are still to be build, still on blueprints, with a good contract even if they can't finish or even start you still keep your whole money


so pretty much you shouldn't be having a problem to keep your car, also note if you don't drive a lot you will not to change tires, forget these need to change tires based on time, check they state and see if you really should, stock market tires on a car should take several years for a change if you don't travel a lot

 

[Bible_Belt]

Have you considered a motorcycle?

The south caribbean is the closest I have been to Brazil, but there, narrow wheelbase 4x4s were popular. The roads are hilly and poorly maintained. People with a 4x4 had a lot more freedom as to the roads they could travel, and the dates they could go on. You're not ubering through a rain forest.

 

[Blacksheep]

depend on your town really, I will explain in english since its a english forum

but its all about not only cost, but confort, a simple example, where I live having a car is a must, forget uber or taxi, end game is cheaper to own one, daily I spend less in gas then I would using a bus, plus the time spend, work - home travels is around 10-15 min bus take over a hour on a good day, dating course you could say a uber is good enough, but remember gold diggers or not having a car is game changing for a lot of woman and if they are younger easier is to impress using a car, and don't even need to be a good car

there is also the cost of buying one to selling one, the basic one today is around what? 50-70k lame ass cars, if you already have it better to keep it, because to sell one you will waste more then half that amount, plus you also need to count for any possible emergency who can come up and you need to go fast.

now for how much you are getting paid you are pretty much one of the guys who are paid well getting this much and still having a car I could save around 2,5 month, if you really want to invest on real state and are not in rush try to get early buys on things who are still to be build, still on blueprints, with a good contract even if they can't finish or even start you still keep your whole money


so pretty much you shouldn't be having a problem to keep your car, also note if you don't drive a lot you will not to change tires, forget these need to change tires based on time, check they state and see if you really should, stock market tires on a car should take several years for a change if you don't travel a lot

Thats a very good point man! Thanks!

With my accounts considering only my salary of R$3.000,00 ($557,44 converted to dollar) I can save something about R$500,00 every month. And I'm considering spending very few amount of money. Only the basics. Also I put R$150,00 each month for fun like getting out or spending with something different.

So if I earn more with my freelancers jobs, so it would be a bigger value.

My car is from 2017 and until now I only rode about 20 thousand kilometers. So its well maintained.

Maybe it should not be a good idea to sell it. I'm a bit confused with it, cause I really like my car (new fiesta from ford) and I feel about sad with the fact of selling it.

But based on what you said, I have to put all of that on a balance to don't make any bad decision.

 

[Blacksheep]

Have you considered a motorcycle?

The south caribbean is the closest I have been to Brazil, but there, narrow wheelbase 4x4s were popular. The roads are hilly and poorly maintained. People with a 4x4 had a lot more freedom as to the roads they could travel, and the dates they could go on. You're not ubering through a rain forest.

Yep! I thinking about that too... Its a lot less expensive than a car.

The only thing I'm afraid of is accidents. Its more dangerous, but I know we should not live worrying too much about that. Just driving carefully would be a good thing.

 

[Lookatu]

Right now as you said with taxes, insurance, maintenance, it is a depreciating asset that is taking money from you on an annual basis.

Some that don't use the car that much can offset it by making the car make them money as they can do delivery services with it like instacart, uber eats, grub hub, rent it via Turo, Lyft, Uber, etc as the car will make them money.

If you aren't making money with your car and have to pay to keep it without any real use, it's better to sell it at that point. Just my $.02

 

[Bible_Belt]

Yep! I thinking about that too... Its a lot less expensive than a car.

The only thing I'm afraid of is accidents. Its more dangerous, but I know we should not live worrying too much about that. Just driving carefully would be a good thing.

I have ridden for a number of years. Yes, there is the danger of an accident. But riding a bike has made me a much better driver of a car. I constantly scan for bad drivers about to cause an accident out of habit from riding. I am sure I have avoided car accidents due to that habit.

 

[Alvafe]

Right now as you said with taxes, insurance, maintenance, it is a depreciating asset that is taking money from you on an annual basis.

Some that don't use the car that much can offset it by making the car make them money as they can do delivery services with it like instacart, uber eats, grub hub, rent it via Turo, Lyft, Uber, etc as the car will make them money.

If you aren't making money with your car and have to pay to keep it without any real use, it's better to sell it at that point. Just my $.02

thing is public transportation here is almost non existant and is costly, like I did mention is cheaper for me drive then take a bus and faster too.

cars here are a luxury, since goverment need more money to support they lavish life style and corruption they take everything they can

but I think his problems are in another place, yes he spend a month of salary jus to keep his car, he could use this 13rd salary for that alone, but his costs are too big for someone who make 4k month, 4k here is pretty a lot for a single guy

 

[Blacksheep]

thing is public transportation here is almost non existant and is costly, like I did mention is cheaper for me drive then take a bus and faster too.

cars here are a luxury, since goverment need more money to support they lavish life style and corruption they take everything they can

but I think his problems are in another place, yes he spend a month of salary jus to keep his car, he could use this 13rd salary for that alone, but his costs are too big for someone who make 4k month, 4k here is pretty a lot for a single guy

Thats true, actually my salary is 3k and I'm increasing it with some freelancers jobs.

3k in Brazil you can live ok on small towns, but big cities you would have to live in a really bad and dangerous place or share an apartment with one or 2 guys. For me in my town, I can live with that. But its not that much.

The thing I'm studying lately is that:

- Keeping my car today I can save R$450,00 each month.
- Selling my car, applying it's money on real state funds, and receiving the dividends I can save R$1.427,00 (also I don't have the monthly cost to keep my car with insurances, gas, etc.)
- With dividends, I can earn R$500,00 each month free from taxes (until a new law gets approved).

Some cons I put on paper:

- There is the emotional part that I really likes my car.
- Going to the market anytime I want to buy food, etc.
- Going to date, or picking up a woman at her house (I think this is not as important, cause I'm trying to not waste too much of my time dating and having sex).
- Going to my uncle's farm... But I can get a ride in his car when he went there. (Weekends and not frequently)
- Freedom to drive anytime I want.

Besides that, I don't have to drive everyday since I'm working home office. Basically to buy food.

And in fact what worries me most is that my car is stalling and its value is depreciating.

This is being a very difficult decision, there is some fear or attachment of risking that.

 

[Blacksheep]

Right now as you said with taxes, insurance, maintenance, it is a depreciating asset that is taking money from you on an annual basis.

Some that don't use the car that much can offset it by making the car make them money as they can do delivery services with it like instacart, uber eats, grub hub, rent it via Turo, Lyft, Uber, etc as the car will make them money.

If you aren't making money with your car and have to pay to keep it without any real use, it's better to sell it at that point. Just my $.02

That's true. And based on numbers, investing its money I can save much more money on a long term.

And if I want, in 2 years of savings I can buy a old car if there is a need.

 

[metalwater]

cars are a terrible investment unless some really special one.

the general rule is to live like no other (cheap but safe) until you have enough money/power to live like no other (do what you want anytime). the decision is if the car is need or luxury.

how about a small motorcycle/scooter instead?

 

[jimwho]

I have ridden for a number of years. Yes, there is the danger of an accident. But riding a bike has made me a much better driver of a car. I constantly scan for bad drivers about to cause an accident out of habit from riding. I am sure I have avoided car accidents due to that habit.

Also if you have a sexy bike it is like carrying around a puppy. Women like bikes. A old KTM-950 Adventure is a chick magnet. Want a ride? Only glitch is the extra helmet sometimes .