My approach is to keep one small car, an oldish one that I don't give a toss about if it gets vandalised as I have no off street parking. You don't have to pay the depreciation as it has already depreciated to worthless. I rarely drive it myself, it is my wife's so don't pay any of the bills. When it starts going wrong we'll buy something newer.
We definitely need access to a car, it is very handy just for nipping up to the supermarket or for anything up to an hours drive away. Any longer journey and I'll hire something more substantial.