As the New Year approaches, many Americans are taking stock of their finances. Some looking to save money and reduce their environmental footprints may decide to join those embracing car-free — or "car-lite" — lifestyles.
While some people have ditched cars for environmental reasons, a myriad of other factors have motivated them as well, including time wasted in traffic, safety concerns, and perhaps most notably, high car expenses.
In 2018, 51% of Millennials felt owning a car was not "worth the investment," according to an Arity survey, and that was before the surge in car prices during the pandemic. Even as gas prices have fallen, and supply chain improvements have led some car prices to ease in recent months, rising interest rates have continued to make purchasing a car as expensive as ever.
In October, the estimated typical monthly car payment for new vehicle purchases rose to a record-high $748 per month, per Cox Automotive. The average monthly used car payment, meanwhile, saw a year-over-year increase from $472 to $525 during the third quarter of this year, according to Experian.
Insider previously spoke with three people who have explored car-free lives over the past year. They shared what motivated them to get started, what they've found the most challenging about this lifestyle, and the advice they have for others considering following in their footsteps.