When it comes to personal finance and money management, you’ll often find that your choice of vehicle is going to be a big part of the equation. Because there are so many costs regarding initial purchase, taxes, insurance, maintenance, and on and on, much of the overall cost, value, and risk is going to essentially be hidden under month by month trends.
So, with the understanding that your vehicles play a central role in your finances, what can you do to help yourself manage? Consider researching appropriate initial financing options, knowing the difference between urban and rural vehicle charges, knowing how insurance and deductibles work, just getting junker cars as you need them, and moving vehicles around inside of families to save cash.
Figure Out Your Financing
One of the biggest decisions that you’re going to have to make about your car early is how you’re going to finance it. What can you afford on a down payment? How is your credit? What is your income? How many years to you really want to be making payments on it? The more questions of these that you answer before you actually buy your vehicle, the better control you’ll have on your overall financial picture.
Urban Vs. Rural Options
The cost of a vehicle is different depending on if you’re in an urban or a rural environment. Just look at mileage differences between city and highway and you’ll barely begin to scratch the surface of the financial difference. Dirt roads cause different types of damage than city potholes, and even things like where you can park and how much it costs is going to affect your bottom line.
Thoughts about Insurance
How aware are you of insurance choices for cars? Did you realize that you can end up paying way more in insurance than you do for the asking price of the car over time? But did you know depending on the type of coverage you get, you can adjust those timelines? When it comes down to choosing insurance, the idea is to hedge your financial bets in the right direction, as well as protecting your property.
Getting a Junker
One solution to nearly all of your financial troubles when it comes to buying a vehicle is just getting the cheapest one that you can that still gets you where you’re going. Don’t plan on fixing it. Find one that’s been crushed cosmetically. It will save you tens of thousands of dollars in the long run!
Moving Vehicles Around Inside Families
There are tax considerations that come into play when you want to do well for yourself in the financial versus vehicle realm. You don’t have to pay sales tax on a car if you purchase it from a family member! Keep that in mind the next time you’re in a pinch – look to your family first!