Shocking, right? But, seriously, it really is. Everything costs more here than it does in the United States. It can be tricky, though, because oftentimes the price tags read the same way and you don't notice. If something costs $10 in Akron, it usually falls somewhere around €10 here. But, €10 does not equal $10, of course. It's almost $13.50.
In other cases, the prices are noticeably different. For example, yesterday we received our first car insurance bill for the next six months. It came to about $1,350, yes, dollars. That's for one car, by the way. Compare that to the $250 per car for 6 mos. bill we received in the United States, and the difference is a bit of a jaw dropper.
Now, insurance isn't the only thing with a high price tag. Auto repair and maintenance labor, auto products, and, obviously, fuel costs quite a bit too. If you're able to do basic work yourself, you save some money, but at some point you will have to go to a garage and shell out a nice chunk of change for service.
So my question is why, as an American expat, would you own two or more cars here? People do, at least two! Many purchase ones with the more expensive and rarer automatic transmission too!
Please excuse my ignorance, but I don't get it. Here we are in a country with an excellent public transportation system, plenty of communities with centralized pedestrian only shopping areas, and a network of cycle paths that are so well maintained and navigable it brings a tear to the eye. Yet, people still insist on getting around the old fashioned way.
We were actually told to get two cars when we moved here. Many American based companies pay expats a little extra towards the cost of the cars the employee buys when they arrive. The more cars you own, the more money these companies send to the employee.
But, even if you buy a cheap junker and rarely drive it, you will lose any extra money you think you're making because of insurance and maintenance. You can't buy a diesel powered vehicle and leave it sitting in the garage all the time. The system gets clogged fast with little or no activity. Diesel has to be driven or it ruins the engine. Engines aren't cheap.
So, if we were to purchase a second car, this would be the situation. I'd have to drive it to keep it in working order. Since we live within walking and biking distance to everything I need, I'd have to take the car out for no reason. So, I'd be purchasing really expensive gas I don't need. Plus, we'd have to pay for two more sets of tires. In the next year or so, drivers in Luxembourg will be required to have snow tires in the winter or they will be cited. Several surrounding nations, like Germany, already have that law. On top of the cost for tires, there's the other maintenance to pay for (filters, fluids, etc). Then, there's that giant insurance bill- $2,700- every six months! That's one heck of a price tag for a car we do not need. Most expat families don't need that second car either as the majority of spouses aren't employed and children can take the bus to school. Of course, there's always a unique living situation out there when having a second car is a necessity, but it's rare.
Even though Luxembourg isn't as car free friendly as other European nations, you can certainly go car light with ease. With automobile costs being so dramatically high, it makes logical sense to do so. Why people don't jump at the chance boggles my mind.
With the amount we're saving on gas by living close to my husband's office, within walking distance of most shopping (which has reduced our grocery bill by over half, FYI), and taking public transportation as much as possible, we can cover that massive insurance bill and then some. He even takes the bus to work when his schedule permits and plans to make the trip by bike when the weather improves. The car is only really needed for hauling large loads and getting somewhere the train or bus can't get us. It has almost become a recreational vehicle!
Being in Luxembourg allows expats to live outside the American box. More need to take advantage of that opportunity. Honestly, even with a cost of living raise, we can't afford not to. The skills we will pick up with a change in lifestyle will end up benefitting us when we return home too.
That, in and of itself, is priceless.
I think the whole two-car thing is just force of habit. Everyone thinks they have to have a car of their own for independence, and it's hard to get people thinking outside the box. We are currently living car-free in Belize, and we absolutely love it. Gas is terrifically expensive here, and we are able to enjoy many more luxuries by forgoing that expense, and all the other costs that come with car (or, in the case here, golf cart) ownership. Great post, and good for you for realizing that the status quo should be questioned, not blindly adhered to.
ReplyDelete