Cars are expensive. But they don’t have to be ridiculously expensive. A lot of people end up spending far too much money on their car. We know that people love to have a great car and look after it. But that doesn’t mean it has to be a personal financial catastrophe. With a bit more consideration into how they use their finances, they could keep the same car for a lot less.
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Table of Contents
How you buy your car
Start from the very beginning. When buying a car, two things matter. The first is information. Do your research on the car and its usual price. Get competitive quotes from other dealers. Take it for a spin and have a closer inspection. Then use that information for the next step: negotiation. Negotiation is about how you use that information and play your cards. Don’t get pressured into paying more than you want. One quick tip to help you shave off some cost is: act like you’re going to pay in cash. Dealers make a lot more money off of finance, so they hike the price up on financed deals.
How you look after it
If you want to save more on the day-to-day running of the car, then you want to spend less time at the mechanics. There are two ways of doing that. First, learn some DIY jobs yourself. You shouldn’t need a mechanic to change spark plugs or brake pads. Secondly, get it serviced and looked over more often. If you spot trouble before it happens, it will cost you less to fix.
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How you deal with accidents
Accidents are an unfortunate part of life when driving. Everyone is likely to get in at least two in their driving life. But you can save a lot of money if you can prove it wasn’t your fault. At the scene of a crash, document as much as you can and get the details of witnesses. In cases of automobile injury, your medical notes and bills can be useful evidence, too.
How you use insurance
Given the pertinence of that last point, it’s clear we need liability and injury insurance. But there are some other aspects of our car insurance we might not need as much. For example, if you’re driving an old car and wouldn’t spend to get it repaired, don’t have repairs covered by your insurance. Be smarter and figure out what you actually need.
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How you use your car as a financial asset
Making the car a tool for better finances isn’t just about how you save money on it. It’s about how you use it to earn money, too. There are taxi apps like Uber, yes, but there are plenty of other ways to use it to earn a bit more, too. For example, you could act as a courier or sell advertising space on your car. If you don’t mind driving around for money, there are a good few ways to do it.
It’s all about being prepared. Preparing your negotiation skills, your contacts and your car. The more time you spend taking care of those big considerations, the less you’ll spend in the long run.
