Buying and owning a car can be costly, but it doesn’t have to be. Here are some ways you can cut your costs at the dealership and while you own the vehicle.
Don’t Pay More Than You Have To
Buying new can be expensive, and it is often not worth it. If you can, just buy your vehicle used. Make sure you are getting something that hasn’t been through the ringer and that is in good shape. You also want to have a mechanic you trust check out the car for you. Just know that you can save a ton of money by buying used.
If you buy new, then skimp on all the extras. You probably don’t need all of them, and if you really need to have something extra, you may be able to save a lot of money by purchasing aftermarket parts. You can buy those parts and have a mechanic install them for a fraction of what the dealership will charge you.
How you pay for your car can make a huge difference too, particularly if you’re borrowing money to buy it. Dealership finance is often sold at a far higher interest rate than a typical bank loan for a car, so try to have funding in place before you start shopping.
Run Your Car Properly
Reducing car costs is just as important to do after you have purchased the car as when you are buying it. You can cut down on how much you are paying for your vehicle by running it longer. Most vehicles have 10 year warranties on them, and yours may be able to easily last that long. More people than ever are keeping their same cars for longer, and that’s due to better craftsmanship that keeps cars running for a greater stretch of time.
You also want to make sure you are treating your vehicle right. Regular checkups, changing out the oil and using only the best gas will ensure that your vehicle stays in pristine condition for longer. Also try to drive slower when you can and make sure that you are being gentle with your vehicle.
The better care you take of your car, the less you will have to pay for it in the long run. Even slipping up a little and forgetting to change out the oil every so often can cause a cumulative effect that can end up being costly.
Choose the Right Insurance
The insurance plan you pick needs to be one that is tailored to your needs and your vehicle. If you have an old car, then comprehensive insurance may not be the wisest decision. If your vehicle is totaled in a crash and it is very old, then you probably won’t get as much back for it as you are paying out in insurance premiums. You have to look at the long term, and really only newer cars are worth high-coverage plans.
You may also want to cut off portions of your coverage if they don’t really apply to you. If you have never been in a wreck and you have been driving for a long time, you may not need all the same coverage that some other people would benefit from. It’s risky to lower your insurance coverage, but it can also save you a lot of money, especially if you keep the plan for years at a time.
How do you save money on your car costs?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.