Ditching a $420 Car Payment

In a few days, I’ll be parting with my 3 year old 2014 Mini Cooper S that I bought new right off the lot. It’s a bitter-sweet feeling considering it was my very first new car purchase, but it’s also the first car payment I have ever had. I thankfully won’t be “losing” money on the sale, as I have worked pretty hard over the last 3 years overpaying monthly that I kept up with the deprecation decently well. I had originally planned on keeping the car until the whole thing was paid off (and longer), but that was before I started on my path to financial freedom. Today, the payment is even less necessary since I live barely 2 miles from my office. (Company relocated about 6 months ago, moving from about 12 miles away to 2.

I have been thinking about selling this car for about a year, but subconsciously, I was overpricing the car because deep down I don’t think I really wanted to sell it. One way I’ve been preparing to sell it is by following fellow money blogger, Mr. Money Mustache and his guide to building an electric bicycle. It’s a fantastic guide and by following his steps, I was able to build a similar bike for less than $2,000. I’ll go into my e-bike build in future post.

By selling my car, and accounting for the savings of having no insurance anymore, I’ll be saving approximately $500/month excluding gasoline which I spend about $30/month. Those savings alone will more than max out an IRA each year. SUPER WIN.

Today, and for the past few months I’ve been riding my e-bike to and from work everyday. It’s fantastic. I don’t want to die to many details about the bike, but I can say, this thing hits 40 MPH without peddling. Yes, it’s technically illegal here in California, but I don’t care and I’m saving the environment. Plus, it takes me less time to get to work on my bike than it did in my car. Why doesn’t everyone do this?

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