light rail pass vs cheap car

[Ftao93]

My wife started a job last year that is a significant distance away.    The light rail goes there, but since it's a couple of 'lines' further, the cost is $170/mo for a pass. 

Currently we lucked out and her school pass still works.  However it will stop at some point, and we'll have to pay for the service like normal humans.

We currently don't have a car, electing instead to walk, scoot, or use the bus.  The cost will likely increase $30-50 for the next couple of years, so we're then looking at $200/mo

The other option is to buy a simple compact car, like a Corolla or something in cash

She likes the job well enough.   I'd like her to continue looking, but she's very introverted and having something she likes is a huge step for her.  Otherwise we both hate commuting and the idea of 1 more car transporting 1 person.   The commute is 10+ miles each way.

What do you guys think?

[onlykelsey]

This is really a numbers question you'll need to solve.

$170 x 12 is 2040 (would this be tax deductible?).

If you buy the Corolla for, say, $5K and keep it for 10 years, you're looking at maybe $400/yearly in depreciation, maybe $300 in a sinking fund for repairs (depending on age) ~150 miles/week (you said 10+ so I assumed 15 miles) at maybe .35/mile (total 50/week or 2500/yearly) and insurance (maybe 500/year?).

Looks like 2040 to commute via light rail or 3800 via car.  There are intangibles (would you use the car for other things? would you have to then find places that let you park 2 cars?), but I'd play with your numbers to find the right answer.  I don't think a car makes sense.

[dilinger]

Factor in the cost of her time, as well.  How long would the car commute be?  That's wasted time, price it as such.  How about biking?  Scooting/walking/biking is good exercise, so factor in the cost of an additional gym membership if necessary once switching to a car.  As far as taking the bus/light rail, is that time she manages to get stuff done (work, reading, anything else she enjoys), or is it wasted time?  What about stress levels?

When I was a consultant, I priced my work based upon things like enjoyment, fulfillment, what I might learn, and stress.  If it was a fun project, $50/hr.  If it was stressful or unfulfilling, $100/hr.  If it was something I really didn't want to do, $150/hr.  You could price your commute the same.  Does she enjoy driving?  A 30 min drive might be $25 of her time.  Does she absolutely hate it due to stress?  A 30 minute drive might instead be $75.  Maybe light rail takes an hour, but it's enjoyable, so $50.  $170 + (50*20) = $1170/mo.  Compare that to a 30-min hated car commute?  ($75 * 20) =  $1500 + the ongoing cost of a car (maintenance, gas).

Don't view your time as free.

[therethere]

Some companies that are light rail accessible offer discounted passes. They will withdraw money pretax from your paycheck so in that case it would be worth it.  For our light rail you get 12 passes for the cost of 11. What I've found though is a lot of people sign up to buy for their employer (or they get them as a perk for free) and will list them on craigslist. I've been getting 170$ monthly passes for 120-140$ that way.

My DH takes the train. It can take a little longer than driving and with low gas prices he pays more for the pass than gas would be. But the lower stress is so worth it to him/us. Instead of driving in traffic for 45 min each way, he gets on the train and reads a book its awesome.

[Ftao93]

This is why I brought this up!  You guys are smart cookies.

We don't have any car currently.  No garage either.  Scoots are on a 'lot' right now which gives them some security, but our landlord hopes to build a duplex there soon.

The car would have other uses, but probably not enough to justify it based on that.   Cheap gas is nice, but how long will that last?

She does enjoy the walk to work and back.  She wouldn't do a gym membership anyway :P.

Sadly there are no subsidies for her job at the moment.  I don't think mileage would be tax deductible in any form.

Keep 'em comin, and thanks!

[NoStacheOhio]

Not sure where you are, but in the US, hard costs related to commuting are tax-deductible. So parking, rail passes, etc.

[RobFIRE]

In terms of cost: onlykelsey's numbers look about right. For this use the light rail looks clearly cheaper.

I'd also consider the time/stress factor of the commute as well. Normally you can make better use of the time on a train (read, work etc.) than in a car (listen to radio or maybe a podcast), and the train is low stress and predictable duration whereas a drive at rush hour could be stressful and duration could be variable.

I'd be on the light rail, would only consider car if the car journey is significantly quicker on a route with a nice landscape and light/moderate traffic.