Welcome again to “Ask an Advisor,” the recommendation column the place actual monetary professionals reply questions from actual folks. The subject may be something on the earth of finance, from retirement to taxes to wealth administration — and even recommendation on advising.

In the USA, proudly owning a automotive is broadly thought of a necessity. In response to the U.S. Census, 92% of People personal no less than one car. And it is costly: The typical value of a brand new automotive is $47,338, in keeping with the automotive evaluation web site Edmunds.com, whereas the typical used automotive prices $27,297 — and that is not even together with the prices of fuel, insurance coverage and maintenance.

How mandatory is it to pay for all this? That is determined by the place you reside. 

Whereas life in most suburban and rural areas can be nearly unimaginable and not using a automotive, the story is completely different in America’s cities — particularly one particularly. In New York, the sheer denseness of the surroundings and walkability of the road grid imply residents can dwell with out wheels. In consequence, automotive possession is much decrease — solely 46% of New Yorkers have a automotive, in keeping with the lending firm TitleMax.

However what concerning the different 54%? To personal an car on this pedestrian’s paradise, one should discover a place to place it. And in a metropolis as dense and chaotic as New York — and let’s not even get began about alternate-side parking — that is not straightforward. 

One couple has the choice to flee all that stress, however for a hefty value. The 2 media employees may purchase a parking spot of their constructing’s storage, however the area prices greater than the value of many vehicles. Would it not be price it? Ought to they have a look at the area as an funding, or as a waste of cash?

Here is what they wrote:

READ MORE: Ask an advisor: Is shopping for a house actually mandatory?

Expensive advisors, 

My spouse and I dwell in New York Metropolis, and our constructing has the uncommon good thing about together with a parking storage. Sadly, it is absurdly costly — every spot prices $40,000, and there is a $180 month-to-month “upkeep” price on high of that.

To this point, we have refused to offer into this freeway theft, however we have suffered the implications. Two years in the past, our automotive was destroyed whereas it was parked on the road, smashed into by a drunk or reckless driver. Apparently that is fairly frequent in our neighborhood — one other automotive was additionally destroyed in the identical crash, and its homeowners advised us this was the second time this occurred to them in just some weeks. Our road is affected by totaled vehicles.

Ultimately we wish to purchase one other automotive, nevertheless it would not appear price it except we have now someplace protected to park it. There are additionally business garages in our neighborhood, however they value $400-$500 a month, which looks as if a waste of cash. Ought to we chew the bullet and purchase an area of our personal? One pal advised us to take a look at it as an funding — sometime we may promote it, and a parking spot in Manhattan is barely prone to go up in worth. We may technically afford it, although it could take a giant chew out of our money financial savings. Ought to we park $40K in our storage?

Sincerely,

Spotless within the Metropolis

And this is what monetary advisors wrote again: