How Cars Cost Us
Transportation is a big part of the average American family's budget. The costs of purchasing, fueling, insuring, maintaining, and repairing vehicles are the second-largest expenditure on average, right behind housing (see Table 7.1).
| Category | Amount Spent | Percent of Total Spending | Percent of Pretax Income |
|---|---|---|---|
| Housing | $13,432 | 33% | 26% |
| Transportation | $7,781 | 19% | 15% |
| Food | $5,340 | 13% | 10% |
| Other | $4,094 | 10% | 8% |
| Insurance and pensions | $4,055 | 10% | 8% |
| Health care | $2,416 | 6% | 5% |
| Entertainment | $2,060 | 5% | 4% |
| Apparel and services | $1,640 | 4% | 3% |
| Totals | $40,818 | 100% | 79% |
| Source: Bureau of Labor Statistics, 2003 | |||
The biggest chunk of our transportation costs (more than 70% of the total, on average) is the money we shell out to actually buy or lease the car. ...
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