Everyone knows that cars can be expensive. But what can you do to prevent yours from bankrupting you?
Fortunately, I have some helpful advice. In this article, I’ll share with you what you can do to lower your transport costs and keep more money in the bank.
Here’s everything you need to know:
Lower Your Insurance Costs
The first thing to do is to lower your insurance costs. You want to make sure you’re not spending more than you need.
I’m always getting into trouble with insurance costs because I’m sticking with the same provider year after year, even as they raise their costs. The trick here, as I’ve learned, is to keep switching carriers to ensure you get the best deal. Unlike health insurance, they won’t provide you with much of a discount.
Avoid Depreciation
Second, you’ll want to do whatever you can to avoid depreciation on your vehicle. Sometimes, some makes and models of vehicles can lose money fast.
I like to avoid this by looking at vehicles that retained their value before and then buying something similar today. It’s not a perfect system, but it does reduce the risk of cars losing 40% of their value in the first year, which is a massive hit on your finances and can put you in negative equity on your car loan.
Go Small
Another pro tip to prevent your car from bankrupting you is to choose something small. If you can bring down the cost this way, you can often save a lot overall.
I like Kia small cars because they hardly cost anything to run. Taxes, insurance, and maintenance are all lower on these vehicles. Plus, they’re quite frugal with fuel, so you can often travel a long way on a single tank.
Protect Again Repairs
You also want to do things with your vehicle that protect against major repairs. You don’t want to get into a situation where you’re spending a fortune every year putting things right unnecessarily.
Here are some of my pro tips for avoiding these big spends:
- Inspect your car regularly, looking for signs of wear and tear and damage
- Pay attention to dashboard warning lights when they illuminate
- Use tire pressure gauges to ensure you’re not driving around under-inflated
- Find a mechanic who always offers you the best advice for looking after your vehicle long-term
Buy Vehicles That Are Two To Five Years Old
Another pro tip is to buy vehicles that are two to five years old. These usually still have plenty of life left in them but also already have most of their depreciation done and dusted.
Cars from the last five years usually have all the modern technology you want. It’s just that you can buy them at a massively discounted price. This way, you’re relying on other people to make the purchases before you and then benefiting from the price they originally paid.
So there you have it: some of the ways I recommend preventing your car from bankrupting you.
