Not many of us could get on in life without our cars. Perhaps you make a conscious decision to buy an economical car, or maybe you’re happy sticking with a base model to save a few bucks. Even if you buy an old banger, that doesn’t guarantee it won’t suck every last dime from your wallet. Here are just 5 ways your motor can rob you blind, and how you can minimize the financial damage:
Fuel
Even electric cars cost money to run. Admittedly, the comparisons look to award electric as the winner in the battle of fuel economies. The more mileage you do, the more fuel you need to buy. But it doesn’t stop there. Your fuel bill can increase if your tires aren’t right, you accelerate and brake too hard, or if you’re driving in a cold snap. Lots of things beyond your control can push that cost up higher and higher.
Insurance
Yep, insurance is our biggest car bill after purchase or rental. There are so many reasons why your insurer might push your bill up higher and higher each year. The first is your driving and reported personal accidents. Even if you didn’t cause the accident and you used a car accident lawyer to claim your fair share of compensation, you’ll probably need to put a fair chunk of that payout toward a bigger insurance bill next year.
Maintenance
If you’re not looking after your car each month, then you’re going to end up with a bigger maintenance bill than you needed to pay. Servicing your vehicle might cost you a little each year, but it could save you in repair bills later on. Replace the filters, the oil and tires regularly. Make sure you have plenty of fluids in the car. And wash your car each week too! It doesn’t take much to damage the paintwork. Despite rust not being a modern problem, it can still cause problems with the bodywork if you don’t keep it in top shape.
Resale Value
When it comes time to part with your beloved wheels, you might have a bit of disappointment when it comes to the resale value. Some cars can hold their value quite well. Classic cars might even increase in value. But most cars lose thousands the moment you drive them off the lot. Check the value of used cars for the models you’re most interested in. It might help you to avoid disappointment later on!
Interest on Repayments
Don’t be in a hurry to buy that new car! If you wait until the end of the season, you can often find better deals. This includes the finance deals on offer. Many manufacturers offer 0% financing if you just hold out a little while. If you’re paying interest on your car loan, then you could be paying thousands over the retail price by the time it’s all paid off. Remember that resale value? Double pain in the wallet! Cars are expensive, but they are an essential part of life. How are you cutting down on the cost of your motor?
