Cars are a necessity in today’s society, but they may not be the most efficient way of getting around. That’s where pre-owned cars come in, and it’s a good investment if you know where to look. Fair warning: the content ahead is not for the faint of heart. We’ve all grown accustomed to the friendly median price of a new vehicle, averaging out at $30,000 just this year. There’s a good reason for this: it’s not as hard as it seems to get your next car. Sure, the sticker price is right there in the window, but that’s the easy part. The hard part knows what to do with the money you save.
Over the past month, I have been interviewed by a few local media outlets, and what I have discovered is that most people are clueless about the costs they may be paying for their cars. Often, they simply don’t know how much their car costs them and will be shocked when you tell them. In order to avoid that and hopefully help you, I have come up with a list of 5 common car costs you can avoid.
• Buying New instead of the old
If you’re shopping for a car, you’re probably not concerned about the sticker price—you’re more concerned about the total cost you will pay over the life of your vehicle. Unfortunately, used cars are hard to find in your price range. People who buy new can avoid depreciation costs and deal with costly repairs, but they do have to pay a premium for the privilege. The good news is that you can reduce the price of a new car by hundreds of dollars by shopping used.
• Not Taking Into Consideration Other Expenses
The average car owner spends more than $8,000 on repairs each year. This is a lot of money. While this cost may seem high, there are some ways you can reduce this expense. Avoiding services that are not necessary to maintain your vehicle can save you money. For example, there are many services that come with the purchase of a new car that is completely unnecessary. One of these services is the dealership’s cost to replace a burned-out headlight. If you buy a new car that has a one-year warranty, the dealer is legally obligated to replace the burnt-out headlight at no cost to you. If
• Thinking in Terms of Monthly Payment
Most of us have heard of the term “cash-flow,” but it’s not something most of us have a clear understanding of. Most people don’t know the difference between net and gross, and the idea of “monthly payment” isn’t something most people understand. The concept of cash flow is a lot different from what most people think, and you’ll find that it can really help you plan future purchases of cars, homes, and other things.
• Choosing the Wrong Car
When buying a car, one of the biggest decisions is what kind of vehicle to buy. Choosing the wrong vehicle can have a significant impact on your overall financial and personal situation. While everyone has their own priorities, you can easily take a car that is overpriced and under-equipped for your needs, for example. If you’re a car lover, you’ve probably taken a moment to glance at your favorite magazine or the scores of car reviews on the internet. Now, it’s time to take a moment to consider which makes and models might be right for you and which you should avoid. You could look at what’s new or what’s hot, but you’ll be better off by looking beyond the latest model that you just can’t pass upon.
The cost of owning a car is a major factor for many, particularly when it comes to deciding if they will buy a new car or not. It seems we can never get it right, and the cost of buying a car often ends up costing more than you bargained for. To help you avoid these car costs, we regularly work out how much you can save when buying a new car, along with the costs you can avoid by not buying one. In this post, we will discuss the importance of not buying a car that costs too much.