How to Save Money on the Cost of Car Ownership
Saturday, April 13, 2019, 6:00 AM | Leave Comment
Owning a car is considered a necessity for many people in the U.S. However, the cost of buying and maintaining one often deters people from having the vehicle they need. How can these people save money on the cost of car ownership?
Although the cost of buying a car can range greatly, there are a few tricks to purchasing a vehicle that can help car buyers find an affordable set of wheels.
Even after the car is purchased, regular maintenance is required to keep it running. This can also get a little pricey, but the following tips can help you keep the costs within your budget.
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Saving Money on a Car
When you’re in the market for a car, it can be easy to get pulled into a financially irresponsible decision by a car salesman who earns a commission from each sale. It’s important to know what you want and need as you start looking for a car in order to make the best decision. If you’re looking for an affordable car, buying used often helps lower the price of a vehicle drastically. Don’t be dissuaded by the prospect; as long as you’re buying from a reputable car dealer, the car should work great.
<>If you’re looking for a new car to replace your clunker that’s no longer running, look for a dealer that will lower the price of a car in exchange for your old car. If that’s not an option, consider looking for a different car buyer. Car dealers and clunker buyers will often pay at least a few hundred dollars for a car, even if it’s no longer running, which you can put towards a new vehicle.
Once you find a car in your budget, negotiate the monthly payments and interest rate with the car salesman. Although settling on a monthly payment you can afford is necessary, your interest rate is often considered the most important financial aspect of a car purchase. Every percentage point adds up to thousands of dollars. When you’re negotiating the price of your car, make sure to ask what the total cost will be when you finally pay the car off. Carefully weigh your vehicle and financing options before signing the dotted line.
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Car Maintenance
Before you make a car purchase, do some research on the cost of certain car brands and models. It’s no secret that some car brands are more affordable — not only because the price out of the lot is low, but because they are reliable and require little maintenance over the years. However, even with these affordable cars, it’s important to get maintenance work done as needed to avoid ruining your car’s engine.
Car maintenance can often come up at the worst times, so it’s important to save money to be prepared for this. In the long run, getting the car maintenance done when your car alerts you that it’s time will cost less than waiting until it becomes a problem. Check your owner’s manual for specifications on how often you should have various parts checks. If you purchased a car with a manual transmission, for example, fluids are typically changed between 35,000 miles and 50,000 miles, depending on your car model, the geography of where you live, and the fluid type.
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Finding Insurance
Although buying a car is one of the most expensive purchases people often make throughout their lives, car insurance coverage is a steady monthly investment. Like other bills, car insurance costs can vary depending on the type of coverage you purchase and your driving history. However, car insurance is absolutely necessary. It’s illegal to drive without it, and if you’re at fault in a car accident, you can quickly accumulate thousands of dollars of debt. Even in a minor accident, not having insurance can set you back.
Therefore, having basic car insurance coverage should be a priority. However, additional forms of coverage are a good investment in peace of mind if you have the funds for it. When choosing an insurance company, look for one with discounts that apply to you, such as a safe driver or good student discount. As you talk to an agent about potential insurance, try to negotiate an affordable monthly rate. There are some easy ways to lowering your monthly premiums, so be sure to explore every option. Do some research to see if there are better options elsewhere.
Owning a car gives you the freedom to do whatever you want, whenever you want to do it. It’s a luxury that many people prioritize in their lives, even if the cost of owning the car weighs heavily on your budget. However, if you are careful and play your cards right when you choose and purchase a car, you can find a great deal that works for you and is not such a large financial strain.
Insurance is a crucial aspect of owning a car, but you should look and find a great deal that keeps you safe on the road throughout your travels. With diligence, you can reduce the costs of car ownership.
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