Buy the asset you need
You love cars, but that doesn’t mean they don’t drive you mad! The fact is that vehicles don’t follow the same rules as any other asset you purchase. Your house increases in value over time. Your car, however, decreases by a considerable amount within seconds of driving it off the lot.
Sure, you’re a petrolhead because you can’t replicate the sensation you get when you smell gasoline or hear the engine’s roar. Still, any hobby has to be affordable, or else you’ll never be able to keep up with the monthly payments.
You’re probably forking out more than you need to, and here are the reasons why.
You’ve Picked The Wrong Insurer.
A car insurance policy is pretty standard throughout the industry, so how can you choose poorly? The truth is that most motorists assume that quotes are similar, yet they are not. It may shock to know that certain car insurance companies are happy to offer their customers decreasing monthly premiums.
That way you’re not stuck paying for a car that’s lost 40% of its value within a year of driving off the car dealer’s lot. It’s tempting to assume that insurers are the same and that they’re out to make money whatever the cost. They aren’t, which is why you must shop around for the cheapest insurance options.
You’ve Financed A New Car.
To wait until you can afford a vehicle outright isn’t realistic for some people. Not only can you pay it off in monthly premiums to make it more affordable, but you need a car. Whether you are a worker in California for a technology company or a parent who needs to transport their children, a car is necessary.
Women know good deals and will shop around when looking to purchase a new vehicle. Your car will be worth 60% of the initial value after you purchase the car. With a used model, the depreciation will be less, and your savings will be higher.
The Engine Is Massive
You will pay more for a larger car and a bigger engine in America. In Europe, they penalize you for having a larger engine because of fuel economy. While the asphalt’s width will never be an issue in American, the price of gas is a variable expense. For owners with overly-sized engines, this could result in charge of a couple of bucks every month. For example, $20 doesn’t seem like much to pay, yet it’s $240 a year that you could save. And, it’s not as if you use the extra horsepower.
You’re Working From Home
The COVID-19 pandemic has forced businesses and employees to work virtually until it’s safe to return to the office. Although this is less expensive, initially, it depends on your status. If you lease, for example, you’re paying for a vehicle that you barely use. Then, there is your insurance policy to consider. Some people commute long distances, and their mileage is reflected in the price. If you don’t own your car and aren’t using it regularly, you may need to find an exit strategy quickly.
What is the most expensive feature of your vehicle?