A motor vehicle can be the key that unlocks a world of possibility. From everyday school runs made easy and having a vehicle to transport big family-sized shopping loads, to impromptu trips across the country. However, they can be expensive to buy and run – the AAA reports that the average car costs $8,500 a year.
With that thought in mind, you might be wondering how exactly to budget for your car – how to scrimp the extra dollars and cents, how to get the best deal and all while setting a good example for the kids.
Before you set out on your journey to getting that new vehicle, it’s important to know – to the dollar – what your basepoint or target is. How much will your insurance cost? How much will the relevant taxes in your state amount to? If you’re buying or selling a used vehicle, have you had a formal appraisal of the second hand vehicle? Don’t take it on face value, as an independent and agreed sum may save you money. Look to the manufacturer schemes, and see if your car builder have incentives that will see the cost of your new vehicle subsidized.
Look At The Efficiencies
In many aspects of life, and big purchases, people often forget about the benefit they will gain from the new vehicle. For example, the new vehicle could be doing an extra 10 miles to the gallon, saving you a good chunk of cash. Look at other aspects of your life, too – will buying in bulk at the store in a bigger vehicle save you money? Will the insurance put you in better stead? Make sure to do a detailed analysis using a well set out budget to get on top of what money will be saved by the new purchase.
Scrimp and Save
Finally, the tough bit! If the car is outside of your price range, or will require an element of downsizing, don’t be afraid to just go for it. It’s probable that you will feel happier from the process of having a shiny new vehicle and all of the things that brings – even when it’s just saving time, you can benefit. You can definitely miss out on the big brand name, or a takeout pizza night with the family once a week, for your long-term benefit.
Those are the basic guidelines to budgeting for a new vehicle. In short – take stock of what you do have, take advantage of all of your entitlements and don’t be afraid to be hard for the joy to come.