High transportation costs can really mess up your budget. After housing, transportation is usually the second-highest cost. And these expenses can be a budget-breaker. If you live in an area with excellent public transportation, you may not even need a car. However, most of us don’t, or have families, live a distance from work, take frequent day trips, or need to transport bulky items, etc. So this article is addressed to those who need a private vehicle,
Here are some tips:
- Pay cash for a car, and buy a used vehicle instead of a new one (let someone else take the big hit on depreciation). The exception might be if you have stellar credit, can negotiate a great deal and get zero interest financing on a new vehicle.
- Buy a used vehicle from a private party if possible (avoid dealer overhead).
- Get a CarFax report to review the pre-owned car’s history.
- Have the vehicle checked by a trustworthy mechanic; BEFORE you conclude the deal (Make it your priority to find an honest, competent independent mechanic – get recommendations).
- Try to buy a vehicle that gets good gas mileage (this wasn’t so important when gasoline prices were low, but now it can be a major monthly expense).
- Religiously maintain your vehicle with regular (3-5,000 mile oil changes, regular maintenance, etc.).
- Gas prices vary a lot, find those with the lowest price per gallon – don’t worry about “name brand” petroleum products.
- Treat your car gently, and with care. No “jackrabbit starts” excessive speed, etc. Maintain the exterior and interior with regular washes and waxes, and clean-ups.
- Comparison shop for insurance. On-line companies (e.g. GEICO) sometimes have the best deals.
- Drive carefully and don’t get traffic tickets, they cost money and may harm your driving record, and increase your insurance rates.
I’m sure you can think of a few more ways to save on transportation like walking a few blocks to save on parking fees. Put on your “thinking cap” and see if you can reduce costs in this important budget item.
