Money Saving Car Tips
Whether you are buying new, used, or trying to make the most out of your current wheels, these money-saving car tips are designed to keep your car budget out of the red.
Always remember a car is a depreciating asset. No matter how cool the ride, the moment you drive a vehicle off the lot it looses 20% of its value and just continues to go down.
Treat your car like you treat your skin. If you give life to this object, chances are you’ll treat it better. Keep your car out of the sun (heat can evaporate gas as well as warp leather). Wash it when it needs it and learn to perform routine maintenance.
Keep the car forever if you plan to buy new. Buying a new car and driving it until the wheels fall off is often the most sensible and lowest cost solution.
Skip most upgraded or optional vehicle packages and trim levels. Car models come in certain trims, from basic to luxury, so choose frugally, skipping technology comforts like an interactive navigation screen, second-row DVD player, hands-free Bluetooth, and XM radio. These items require more maintenance and could become outdated as the years go by.
Finance a car for 3 years or less. Elongate a loan and you’re setting yourself up to throw a lot of money away on interest.
Choosing between a zero-percent financing or cash-back options depends on the price of the car. Suze Orman, financial author of such best-seller books such as Women & Money, advises taking cash back if the car is under $20,000. But opt for a zero APR rate if the car costs more – with an interest rate of 5.9% or lower, you’ll pay less over the life of the loan rather than what a cash back reward might offer.
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