Save More On Car
Car maybe the most expensive item people purchase after a house. But unfortunately car is much depreciating after years. Bcause of this matter, saving money in just this area can make a huge difference in your saving.
1. There are many things to consider beside car price. Look at your current budget and see what difference you could make today by totaling the cost of owning a car. Costs include the price of depreciating value of the car, insurance, maintenance, gasoline, and miscellaneous related vehicle costs. The more expensive your car is, in general, the higher the insurance costs, the higher the taxes and fees, the higher the maintenance and usually the higher the operating costs.
2. Car buying is generally not a logical process. It is an emotional process. Advertising constantly gives us the message that we are what we drive. Take your emotion out of your car purchase, buy based on your familiy needs. It may be very tempting to own luxury car. But imagine if you buy less expensive car, you can put aside the extra maintenance costs, gas mileage, or insurance an put them in investments. Over a long time, with compounding interest, you might be able to retire years early just due to this decision.
3. Buy a smaller car.What you drive determines how much it will cost you. Not only smaller car is cheaper, but also your gas mileage per gallon will be less than if you were to own a smaller car. Not only you save at the time you bought the car, but also you save while you driving years later. Buying a smaller car is a good start.
4. Consider resale value. If you buy a car with a poor resale value, you could end up losing thousands more per year. But, good resale value car will give you extra in your pocket when you sell it years later.
5. Consider fuel efficiency. With the rising gas prices, this is becoming more and more significant. Hybrid car or other new technology may cost you much in initial car purchase, but it may help you save more in the long run.
6. Consider buying a used car. It is far less expensive to buy a pre-owned car instead of a brand new car. The primary reason is that cars depreciate in value immediately after purchase and continue to do so. Cars depreciate at a rate of 15 to 20% per year. That means that up to one fifth of what you paid is lost the instant you sign the papers. Spend less to begin with and it will also cost less per year. Buy a well rated used car from reputable dealers or from private owners you can at least verify the history of the car.
7. Stick with the car you have. The cheapest car is maybe the car you already own. When you buy a new car and sell your old one, you typically end up paying a little extra either to a dealer or in advertising your previous car. Buy only when you need one, for example your car is very inefficient fuel mileage.
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