Actually, we can’t afford a car — Carfree with Kids: "We actively choose to live our lives without a car. When our truck died, way back in 2004, we probably could have found enough money to get another one if we’d really wanted to. We wouldn’t have been happy about it, but we could have done it. Really though, we were just happy to see it go.
Since then, our financial situation only improved (what with finishing grad school and actually getting jobs, not amazingly well-paying jobs, but it doesn’t take much to beat grad student pay). We paid off all our debt (well, other than our tiny condo), saved up a nice emergency fund, and bought our house, all in no small part due to our savings from not owning a car. I’ve always assumed we could get a car if we wanted one, but since we don’t, we just enjoy that extra cushion in our cash flow and try our best to save it or put it to good use."