Car Decisions That Can Save You Money
Next to housing, transportation is one of the highest expenses in our monthly budget. The cost of buying a new car can range from $20,000 to $50,000. The cost to insure that car can cost hundreds of dollars a month. Gas prices are over $2 a gallon, and can easily top $4 per gallon during the summer time, adding hundreds more per month to our expense column. Then, if the car has a mechanical problem, you can easily spend thousands to get something fixed. Yet, if you were to ask the average person if the cost of owning a car is worth it, the resounding answer would be “yes.” Cars are necessary to get back and forth to our jobs, and they represent a freedom of mobility and living that most Americans value. Instead of ditching the car, here are some ways to lessen the price of owning one.
Pay Cash Upfront
Leasing a car or financing one, usually means you can’t afford the model you have your eye on right now. If you want to be sure you can afford the car you want, consider paying cash upfront. That way, if you lose your job, you’ll never have to worry about getting it repossessed. You won’t have to pay interest on financing, and you won’t have to worry about returning it at the end of the lease and paying tons of money in extra mileage charges.
Buying a used junker car is usually more budget-friendly than buying new. A car worth only a few thousand dollars only has to last a few years to pay you back, but a car worth tens of thousands will have to last 10 years or more for the same return. In addition, new cars automatically depreciate when driven off the lot and require additional insurance requirements, if they are financed.
Maintain The Car
Don’t skip the oil changes, and stick to the regular maintenance schedule. If you’re trying to save money on the car, it’s better to learn how to do minor maintenance yourself, than to skip it all together. The less you maintain the car, the higher potential that you will have a major mishap in the near future that costs far more to repair than to prevent. Make sure the tires are inflated properly to get the best mileage.
When Disaster Strikes
There will be times when you have to make a decision to either make a repair or opt to buy another car and trash the old one. If the repair is straining your budget, but is less than $600, you can get “money today” loans through a payday lender to help you restore your transportation as quickly as possible. You will have to repay the loan when your next paycheck comes due, but at least you can get to work. For big repairs like an engine or transmission problem, decide how much money the car is worth, and whether you can afford to buy a new one.
Signs of trouble this significant usually mean the car is reaching its life expectancy and can’t be counted on as reliable transportation in the near future. There will be other trouble as the car starts to fall apart little by little. If you can’t handle additional repair costs, junk the car, trade it in, or donate it to your local charity, and get a new one.
Shop Around For Insurance
Insurance costs can vary tremendously from one provider to the next. If you are a part of a group, whether it’s a state employee’s membership or a alumni club of certain university, check out all possibilities for a lower insurance rate. You also want to set your requirements at the bare minimum, if your car is already paid off. Odds are, if it’s totaled, and it’s a junker, it won’t be worth much to replace anyways. Instead, focus on injury liability.
Watch Your Driving Habits Carefully
Speeding and driving aggressively actually costs you money in terms of fuel usage and hard wear on the car. Learning to drive the speed limit, and avoiding hard brakes, can keep your car functioning smoothly, and for less money than if you abuse it. If you can find a way to avoid driving your car, that’s the best way to make it last longer. Instead of driving the car to the corner grocery, enjoy the scenery on foot.
Don’t Treat Your Car Like A Trash Can
Many people use the trunk of their car and the back seats like a trash can, or extended household storage. Every added bit of weight that gets loaded into your car impacts your mileage. Add an extra 100 pounds to your car, and you can end up losing 2% off your gas efficiency.
This entry was posted on Thursday, January 21st, 2010 at 4:05 pm and is filed under Saving Money. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
