Save Car $$$
Reports continue to indicate our country is slowly coming out of the recession and the economy is stabilizing. But analysts caution that the job and housing markets remain weak, unemployment should top 10% later this year and credit card debt still plagues millions.
In other words, saving money wherever possible continues not only to be important, but for many households, it’s essential to economic survival.
Not exactly an ideal time to run out and buy a new car – even if automakers scramble to convince us otherwise.
Opinions vary on the cost effectiveness of keeping an older car with a greater likelihood for mechanical problems and costly repairs vs a more reliable – and warrantied – new car that comes with car payments.
But in these tough economic times, lots of people don’t have the luxury of such a debate – keeping their current car is the only option. Some good news on that front is that today’s cars – provided they receive the proper maintenance – are built to last 200,000 miles or more. In fact, the average car lasts about 13 years and 145,000 miles, according to the U.S. Department of Transportation.
A car is the second largest purchase (after a house) that most of us will make, so it makes sense to get the most out of that acquisition.
Driving the same car for more years saves you money in several ways: fewer or no monthly car payments, lower insurance premiums and time to save for when you finally do have to buy your next car.
The savings from fewer or no car payments usually outweighs more frequent repair bills. A $2,200 repair bill is painful, but if it’s the only major repair needed that year, it comes out to $183.34 a month – far lower than monthly payments on most new cars. Budget for maintenance and repairs on an older car just like you would for new car payments. That way you’re better prepared for a costly fix.
But eventually those repairs happen more frequently and you must decide if it’s worth keeping the clunker. Edmunds.com has a good rule of thumb for when you should go ahead and buy another car: when repairs cost more than the car is worth or more than a year’s worth of car payments.
There are lots of ways to put off junking the jalopy for as long as possible, starting with following the maintenance schedule for your make and model car. You can find it in the owner’s manual or there are plenty of places to find the info online, including a link on the Edmunds.com site where you enter the year, make, model and mileage and the site displays what needs to be done when and even estimates how much it will cost.
Oil changes at the manufacturer’s recommended intervals are essential to prolonging engine life. Think of the cost as cheap insurance against a possible $4,000 replacement engine. With every oil change, be sure to check fluids, belts, tire tread and hoses – or be sure someone makes those checks. You decide, based on your mechanical prowess, whether you’re doing the oil change and maintenance or using a professional. Just be sure it gets done.
Speaking of comfort level under the hood, a knowledgeable, trustworthy, fair-priced mechanic is gold! There’s lots of information on how to find a good mechanic and most start with asking your family and friends for recommendations.
Regular maintenance also improves your gas mileage – a nice benefit as gas prices head toward $3 a gallon – again. Better gas mileage even impacts our national security, according to the federal government’s site on fuel economy.
Additional ways to improve your car’s gas mileage include: drive sensibly, combine trips, keep your tires properly inflated, reduce weight, use the correct grade of motor oil, avoid excessive idling and observe the speed limit.
It’s interesting how making an effort to save money can result in multiple benefits: maintaining your car lets you drive it longer and save; a well-maintained car operates better and saves money on gas; another way to save money on gas is by not speeding and that could save you the cost of a traffic ticket, if not something worse!
It just makes sense to drive safe out there.
Read more at Mitch’s Nashville Accident Lawyer legal blog.
Get to know Nashville Accident Lawyer Mitch Grissim by watching his videos.
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