Archive for October, 2010

Every one wants to drive the best car that they possibly can, but with the economy the way that it is, and cars being a rapidly depreciating asset anyway, many people think that they can not actually have the car that they want. However, with proper management of auto expenses, many people can actually get a lot more car than they would think normally.

Below are some tips on how to save on car expenses without losing car value.

1. Buy cars that last.

This may seem like a no brainer, but there are many cars which simply last longer than others. It would be good to check with friends, family, and review sites to see which cars actually last longer than others. Similar brands can provide much different values depending on which one you get.

A car loses much of its value at the beginning of its life, and less and less for every year that it is kept. Therefore, the longer you keep the car, the more value that you are getting from it, and the better value that you can keep when selling it or trading it in.

2. Consider smaller model cars.

With the newer model cars being much more powerful in smaller packages, car buyers no longer have to get the largest and loudest car to get the most power under the hood. Consider smaller models which last longer but which also have the power that you need from your vehicle. Smaller cars usually get much better gas mileage, require much less maintenance, and are easier to park and move than bigger cars. Also, auto insurance is across the board cheaper for smaller cars than for their larger counterparts.

3. Consider your driving patterns and options.

To save expenses, you must consider both your driving habits and the options that you have on your vehicle. For instance, in stop and go traffic, using the air conditioner is a huge power guzzler which sacrifices several miles per gallon. Also, manual transmissions are known to get much better gas mileage than their automatic counterparts, and 6 cylinder engines get muvh less gas mileage than do 4 cylinder engines.

4. Save the insurance buys for later.

If you purchase either credit life or credit disability insurance through your car dealer as an extra or as an add on to your car loan, you could actually end up paying more than 5 times what you normally should pay for that type of insurance as a stand alone sell. Many dealers will hard sell this into the package. Hold your ground and stand firm that you will not have either credit life or credit disability insurance rolled up into your car loan.

5. Beware of extended warranties.

Extended warranties and similar products which are bought as an add on to a car loan rather than as a stand alone product can also end up giving you unneeded expenses, as car dealers will routinely try to charge you way too much for these products as well. Simply decline these products and purchase them later from reputable third party sources.