A Personal finance blog to get rich
Owning a car is a big financial responsibility. The costs can add up quickly for gas, insurance, and maintenance. But there are ways to reduce the cost of vehicle ownership and make it more affordable. Here are some excellent ways to do just that.
One way to reduce the cost of owning a car is to buy extended auto warranty coverage. This can help you cover the cost of unexpected repairs down the road.
Buying a used car is a great option for many people. A used car costs thousands of dollars less than a brand-new one, so buying a used one is a no-brainer for anyone who is on a tight budget or wants to save money. There are a number of quality used cars available, and the right used car can last for years.
However, almost everyone has heard at least one horror story about buying a used vehicle. No one wants to deal with a used car that is a money pit due to constant repairs, or a used vehicle that stops running altogether shortly after it is purchased.
For most people, driving is an essential part of everyday life. Whether you depend on your car to get to work, shop for groceries, or drop your kids at school, you’ll need a reliable vehicle to help you along the way. Unfortunately, even the most well-tended cars will eventually hit their high-mileage breaking point.
While it may be tempting to brush issues under the rug or fork out the big bucks to fix your treasured car, it’s safer and more cost-efficient to start fresh with a new model before your vehicle gives out entirely.
For many students, a car is not an optional buy. When you need to get around a lot or your school is too far away, you’ll need something to get you there. You can use public transport if the option is available but, more often than not, this takes too much time or is too complicated for a student with thousands of things on his mind.
Sure, you can find some of your college friends and ask them to drive you around, but this can’t last forever. Sooner or later, you’ll need to get your first car. Fortunately, there’s a way to purchase a car on a student budget. If you worry about how you’re going to afford this, we have some tips that should help you out.
Earlier we used to drive a BMW when I traded that in for a Hinda CRV, it depreciated by as much as 70%. If I consider the maintenance cost we incurred in all 4 years of owning it, that BMW cost us a fortune. I vowed to never ever buy a German car while living in the USA.
Here’s a reality that makes perfect sense when you think about it; even though most people avoid actually doing so. There’s a whole lot more to having a new car than just buying it. Getting the car, as much work as that can be — if you take your time and pick the right car at the right price — is just the beginning.
So, this is the second part of the case study. Hope you enjoyed part I. Let me start with a picture of my 10 years old Hyundai which I eventually had to sell to scrap buyer. Let the study continue here.
How much does it cost to own a $45,000 mid-range luxury sedan over fifteen years? The three tables below summarize the average annual cost of owning a $45,000 mid-sized sedan over three consecutive five year periods. Purchase taxes, fees, and other acquisition expenses are assumed to be an additional $5,000 for a total acquisition cost of $50,000. Representative examples of these cars would be from the mid-range of models made by luxury car manufacturers, such as Audi, BMW, Lexus, and Mercedes.
Buyer’s remorse is unfortunately one of those sinking feelings that most of us have had at one time or another. The worst case I’ve experienced was when I purchased a Chinese water dragon from a pet shop at the age of 13 on a whim. It was when I got home that I came to the realization that I was not only expected to feed it live crickets and mice, but that it would someday grow to be three feet long. That was some serious buyer’s remorse!
This doesn’t hold a candle to the types of mistakes we can make as adults, however, particularly with big-ticket items like properties and cars. If you’re in the market for a new vehicle, you’ll want to avoid the following common mistakes which could lead to you driving away with a bum deal.
