Mint.com (awesome financial management site , which you should be using) breaks down just how much you “need” a car.
Personally I could probably live without one. During the good weather I can bike to work, and at only 5-10 minutes away, my wife could pack the kids in the car and zip me over there / pick me up when it’s really needed. It’d be annoying to spend the whole winter doing that, to be sure, but it wouldn’t be the end of the world.
However, here’s where my big advantage lies – I own that one. No car payment. So other than the insurance on the thing, occasional gas and very occasional maintenance, it’s not that big of a money sink.
What about you?