One Big Expense That’s Actually Worth It for College Sophomores

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Car ownership gives college students greater access to job opportunities. Find out how to save on car expenses. 

How do you make the most of your sophomore year of college? Your second year is typically when you and your peers begin to venture off campus. You might travel to rival schools, visit high school friends across the country, or wean yourself off the mandatory college meal plan.

Every one of those things is a million times more doable with a car. A car makes travel easier. It makes you the “go-to” person for off-campus events you can’t reach by bus. A vehicle also allows students to work off-campus jobs.

Many first-year students may fail to take advantage of a car because, let’s face it, car ownership is expensive. When paired with the other expenses of college, it can seem downright unappealing. But car ownership could end up paying dividends to those who can afford it upfront.

Here’s why owning a car in college is worth the upfront expense.

1. College is about networking

According to recent Pew Research data, 44% of college graduates think college is very helpful for finding job opportunities. Make friends in college, and they’ll hook you up with decent jobs. I’ve experienced this firsthand, having referred a close college friend to her current position.

It’s all about networking, also known as making friends.

Car ownership can help. Volunteer as a driver, and you’ll have students falling over themselves to catch a ride to the nearest Costco location (always popular) or an off-campus event. Getting around without a car is typically a hassle, putting drivers in high demand.

In college, I had to schedule an Uber or beg a carpool to get anywhere out of town; I even planned weekly grocery runs around my roommate’s schedule. Unlike me, she owned a car and could frequently give rides to friends — easy networking.

2. You can work off-campus

According to Capital One survey data, 84% of lower-middle income, non-car owners turned down a job opportunity due to a lack of car ownership. Owning a car broadens work opportunities — especially high-paying ones.

It’s true: Campuses typically offer on-campus employment through Federal Work-Study programs. While many of these jobs essentially pay you to make friends, wages are typically low. Higher-paying jobs, including those that come with tips, can be found off-campus.

You’ll want convenient public transport or a car to access off-campus jobs. Because I didn’t own a car, I was reluctant to search for work opportunities that weren’t on-campus or within walking distance of my apartment. A vehicle makes off-campus jobs easily accessible.

How to save on car expenses

Despite the perks, car ownership comes with significant upfront costs. On campus, you’ll often hear student drivers complain about traffic, gas expenses, and limited parking spots. According to AAA data, the average monthly cost of owning a new car is about $894, including insurance.

Chances are, you’ll want to cut those costs way down.

Split bills with a roomie to halve the cost of car ownership. Chances are, your roommate wants in on that car. You can save big by drawing up an agreement to split the cost of fuel, lease/loan payments, parking fees, and car insurance.

Other small ways to cut costs:

Search for off-campus parking to avoid parking fees.Use a gas and grocery credit card for cash back at the pump.Purchase a used car for cheap — your parents might be willing to sell you theirs.

Old cars can be cheap, but they’re also high maintenance. While it may be tempting to ignore the warning signs, consider keeping your car well-maintained to save on repair fees. You can also snag gas at Costco gas stations, which are typically cheaper than competitors.

Ultimately, car ownership makes making friends and working off-campus easier, expanding student work opportunities. Save on the significant expense by splitting costs with a roommate, and combine car ownership with a thrifty Costco membership to save on groceries — your housemates will thank you.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Uber Technologies. The Motley Fool has a disclosure policy.

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