Is It Worth Owning a Car in NYC?

Is It Worth Owning a Car in NYC? Learn More: https://www.hauseit.com/owning-a-car-nyc/

Save 2% When Buying a Home in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/

Have you ever thought about owning a car in New York City? We’ll demystify the topic of car ownership in the Big Apple in this video.

I’m Nick at Hauseit. Check out our website https://www.hauseit.com to learn how to save money on commission when buying and selling real estate in New York City, Long Island and the Hudson Valley. So let’s get started!

So, why Own a Car in NYC?

NYC’s proximity to the Hudson Valley, Long Island, the Hamptons, hiking/outdoor areas, farms and numerous beaches in New York and New Jersey provide for a plethora of day and weekend trips which are less than two hours from the city.

These types of trips are particularly appealing if you’re tired of the repetitive drinking and eating scene in NYC.

For the more adventurous, there are several other great destinations a bit farther away, such as Lake George in Upstate New York which is approximately a 4-hour drive from NYC.

It’s also possible to drive to other major cities such as Philadelphia and Baltimore which are two and three hours from NYC, respectively. A car can also be used in the winter for weekend ski trips and for apple, berry or pumpkin picking during the warmer months.

Owning a car makes it considerably easier to go on spontaneous trips or book things last minute compared to renting a car, which is a major turn-off and source of stress for many New Yorkers who would otherwise love to leave the city from time to time.

How Much Does it Cost to Own a Car in NYC?

The cost of owning a car in Manhattan with garage parking is roughly $500 a month for parking, $200 a month for insurance, plus your actual car or lease payment. Leasing an entry level BMW such as a 228xi for $400/month means your monthly cost would be $1,100, or $13,000/year, excluding gas, tolls, registration, inspections and maintenance.

If you opt to lease a less expensive car, such as a Mazda CX-30 for $275/month, your total cost would be $975/month or $11,700/year.

Manhattan residents receive a small discount on parking through the Manhattan Resident Parking Tax Exemption.

But if you’re looking for even bigger savings, you may want to park your car in Brooklyn. This makes a lot of sense if you live on the East Side of Lower Manhattan, as you can easily take the subway just a few stops across the river or hop on a Citibike, Ebike or electric scooter to cross the Williamsburg Bridge.

If you rent a car to take weekend trips outside the city more than twice a month, the math of owning a car starts to make sense versus continuing to rent cars.

And of course, you can pay considerably less per month than in our examples above by purchasing a beater car and parking it on the street, meaning the only thing you’re responsible for (aside from maintenance, registration/inspections and buying the car itself) is insurance.

Skimping on garage parking is not for the faint of heart, and if you choose to, prepare yourself to spend hours each week moving your car around in the early mornings and fending off Traffic Enforcement officers.

The math of owning a car makes even more sense if you’re part of a multiple earner household or if you already find yourself spending considerable amounts of money on transportation for weekend getaways and other tips outside the city.

Should I Lease or Buy a Car in NYC?

We recommend leasing a car versus buying in NYC. The main reason why it’s better to lease is because you’ll have a newer car which in theory means less time handling repairs and maintenance or dealing with out-of-warranty repairs, particularly if you buy a used car.

Most mechanics are far out in Queens or Brooklyn, so it’s a major logistical headache and time killer every time your car needs work.

An additional benefit of a lease is the fact that you won’t have to deal with selling or otherwise disposing of your car later down the line. Once your lease expires, you simply drive it back to the dealership and hand over the keys.

Moreover, some dealers will forgive small damage or excess mileage if you agree to lease a new car with them.

Trying to sell a used car in NYC can be a huge drain on your time and energy, and the alternative is to use it as a trade-in at a dealer, but dealers will always offer less than a private party.

The other advantage of a lease is that you can upgrade your car every few years. Not to mention, lease payments are generally lower than financing payments.

Save 2% When Buying in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
.
.
Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
_
#hauseit #hauseitnyc