I wouldn't say its impossible to own two cars, but it definately costs more. Even with multi-car insurance plans, the insurance companies are still going to jack up your rates. It doesn't matter if you can prove that you're the only driver and you're driving the same amount per year, just split between 2 cars. Then you got the state slapping other annoying fees like plate fees, emission inspections, registration, etc. Having two cars, even if both are paid off, can cost you an extra $500 or more each year.
I guess it depends on how one looks at finances. Plates in our state are around $150 each car. We don't have emission inspections, but when we lived in IL, they were free. So, I guess it depends on what state you live in.
Either way, having no or little car payments on two cars and having to pay double the plate fee's isn't going to cost more then taking out a loan on a brand new car and making monthly payments. Also, with my ins, new cars cost more to ins then older cars. I'm also over 25 with a perfect driving record too, so payments are cheap for me no matter what. I guess I compare to when I was younger with a different ins company. I'm pretty sure I used to pay more for one car then I pay now for three cars, and home ins combined.
$500 is no more then two car payments. Rather low payments at that. I don't know too many people who buy a new, or almost new car that have less then $250 a month car payments.
Two cars do cost more, although if there are no car payments, it is not too much more.
Insurance and gas are the larger expenses, as well as maintenance.
If I lived in a state that had bad weather (snow - salted roads), I would have a beater car for the winter.
That makes a great deal of sense and the nicer car would not get ruined (would tend to last longer).
I usually have a project car I work on, a daily driver, my motorcycle, an RV (motorhome) and of course numerous bicycles.
The bicycles are the best when it comes to cost of ownership, but they are limited on what can be carried on them.
I have not made a car payment since I purchased a new minivan in 1990.
My first car cost me $40 to buy (a used 1963 Pontiac Le Mans).
I don't think there are many (if any) new cars that have only $250 a month for payments.
Insurance is cheaper for older cars and also being over 25 has some benefits as well.
Having multiple cars insured by the same company can give discounts as well as low yaerly miles and good driving records.
Overall, it is nice to have a high enough standard of living to be able to own a car, or even two.