Posts Tagged ‘car expenses’

Car Money Saving Tips

If you are looking to save money, then taking a closer look at your car could be a great place to start.  There are tactics that you can use to save money on your car from the day you buy it to the day that you say goodbye.  The key is know where you can save the most money as well as things that require minimal effort, but add up to long term savings.  Here is a quick look at some simple car money saving tips.

Buying a Car – Money Saving Tips

•    Never Buy New
Buying a new car has a certain inherent appeal, however financially it almost never makes sense.  In general, a new car will lose nearly 25% of it’s value in the first few years.  It doesn’t matter how great of a deal you get, there is little chance that it will be good enough to offset the loss of value that is going to happen before you sell it or trade it in.  If you really want to save money, put your ego aside and buy a nice used car.

•    Don’t Buy Add-On’s
If you are buying a car from a dealership, there are a number of add-on’s that they will try to tack on.  Some of them may seem like they can provide a great value to you, however these add-ons often net the dealership more profits than the cars themselves.  You should avoid buying things like – extended warranties, packages, dealership maintenance plans, etc.  If you don’t buy these, but rather simply put some money aside to pay for these services when you need them, you can save a lot of money.

•    Pay Cash
It is hard for a lot of people to do, but if possible, plan ahead so that you can save up enough money to make the purchase in cash.  Taking out a loan on a vehicle not only costs money because of the additional interest that you will paying, but also because while you are paying more for interest, the value of your car is decreasing, so you are losing on both fronts.  If you do have to take out a loan, make sure that you focus on the total or overall cost, not the monthly payments that you will be making.

Owning a Car – Money Saving Tips

•    No Magic Pill
Unfortunately, there are little to no products on the market that are magic pills.  Products that promise to improve performance or improve gas mileage will rarely, if ever, make any difference.

•    Pushing Your Maintenance
While it goes against the common advice, you should push back your maintenance as long as possible.  For example, on many vehicles you are supposed to change your oil every 10,000 miles.  However, if you are not driving your car for extended periods of time, you might be able to put off changing your oil until you reach 15,000 or 20,000 miles.  If you are not comfortable with waiting that long, at least wait as long as possible, while remaining within the manufacturers recommended range.

When it comes to car money saving tips, there are literally hundreds out there.  Some work, while others don’t.  The key is simply to look at each transaction in the bigger picture and ask yourself, how much will XYZ cost me in the long run.  By doing this, finding ways to save money is easy.

Get more money saving tips on our money blog.