Personally I'd move rather than getting another car. I just don't like living in a place where I have to drive to do stuff.
Financially, what would a new car cost exactly? Here I'd estimate a minimum of $1,000 in insurance, $500 in various fees, and then whatever it costs to operate; so probably around $2,000/year at least. So it would save you $4,000/year in total. Is that worth it?
Is there an inbetween option to move to not-quite-the-middle of town and get a bicycle?