Today’s guest post comes to us from Larry, who shares his tips for saving money on your vehicle!
About Larry:
Larry Mitchell writes for Out of Debt Christian, a daily blog on finances, faith and frugality.
Your vehicle and all associated expenses are one of the biggest costs for a household. Unfortunately, it is also a necessary expense. However, there are ways you can cut costs on cars. You might be surprised to learn you can reduce the cost of a vehicle by up to 90%!
How do you reduce car costs by that much? Take a tip from entrepreneur Chris Hedgecock. He started www.carsforagrand.com, a great Web site that lists thousands of cars available for under $1,000. This may sound like it is too good to be true but it is definitely not. To prove it, he bought a vehicle himself, though his own website and proceeded to take the car cross country. He spent just $900 on the vehicle and a few hundred dollars more for thoughtful maintenance and repairs. His cross country journey was a success, and was chronicled in dozens of TV news stories as he made his way across the nation.
Before you go out and buy a cheap vehicle, though, understand that there are plenty of lemons available that will break down within days of buying it. So, it is important to understand how to avoid this while still maintaining low costs.
Start by understanding the vehicle’s complete history. You can buy a vehicle history report at www.vindetective.com for just $15 to learn any car’s odometer readings, title history, accident reports, ownership history and other useful data. This will help you determine if there may be any hidden problems making the vehicle less of a bargain and more of a burden.
With any older vehicle, you will likely need to spend a few hundred dollars on top of your initial purchase price for routine maintenance. Get the oil changed, purchase new spark plugs and make sure the vehicle is in generally good condition. This will make it last longer and be more reliable.
Do not spend a lot of money on insurance needlessly. Instead of opting for full coverage or collision, choose just the minimum requirements by law. If you get more than this, and your vehicle is in an accident, the odds are that you will have spent more on premium costs than what the car is worth.
Invest a few dollars extra each month on a roadside assistance program in case the vehicle breaks down. With any older vehicle, you will eventually get to a point where some significant repair needs to be made. If this happens, make sure you know how to determine the value of the vehicle versus the amount of repair. If the repair will exceed the value, sell it or donate it and start over.
If you heed these tips, you can have a reliable mode of transportation at very little cost. You will save a lot of money each year on vehicle costs. You may not have the newest, most stylish car on the street, but you will be saving a lot of money. In today’s economy, this is especially important.
