Apparently, a recent study in America found that most families can’t afford a new car. It’s easy to see why. Cars can be really expensive. You’ve not only got to think about how much they cost initially, but there’s insurance, tax, fuel, etc. that are all ongoing costs. And that’s on top of all the other regular family outgoings, like food and clothes and shoes and toys…
Fear not. They can be made affordable. And there are lots of ways to do it too.
The first thing to think about is what kind of car you’d like. New cars are beautiful, stylish, shiny and oh so tempting, but they should be kept off the menu if you’re looking to be frugal. A fresh-off-the-production-line car is going to depreciate in value as soon as you drive it away. If you must, go for a nearly new car, but if you can, opt for a used car and you’ll save a whole bunch of dosh.
Next on the list is to think about how you’re going to tackle the actual purchase. Maybe your car has just packed in or you’ve been saving for a new one for a while, but it’s an important thing to consider nonetheless. There are the usual avenues, such as car finance, part exchange or buying the vehicle outright. But if you have bad credit, or you don’t have much of a deposit together, then this is where it can get tricky. However, some car finance companies, like motorfinance4u, can make this easier. Because they look at applications individually, rather than screening through a computer, you’ve got a much better chance of getting the deal that you want.
Insurance is a big cost that can be reduced, but you have to be proactive with it. As with most things it is easier to let it roll over year after year by itself, especially when you’re busy and finding the time to analyse spending is difficult. BUT, if you can, you could save a whole lot.
Make sure that you shop around and get at least three quotes before you settle for one. Take out the highest excess that you can afford (but make sure that you do have the money before you do this), which will reduce your quote. If you can, pay annually as this is cheaper than monthly. Save up monthly in anticipation of your payment to spread the cost across the year without making it more expensive.
Tax can be reduced depending on the car that you pick. The smaller the car (and the smaller its CO2 emissions), the less tax that you’ll have to pay. However, if you need something to transport three children and a dog around, then you might have to pay more than you want to when it comes to tax.
Save money on fuel by using your car as little as possible. I know that seems silly, because why would you have a car if you didn’t really need it? But using your car only when you really need it not only encourages your children to enjoy the outdoors, teaches them how to deal with roads, and gives them (you) a little bit of exercise too. It’s also good for the environment and saves you money on unnecessary fuel use.
Disclosure: Collaborative Post