Vehicles are really one of the most financially inefficient things that we have in our entire lives. The moment you buy a new car, it depreciates immediately, with some estimates saying that a new car will lose as much as 30% of its value the second you drive it away from the forecourt. For that reason, it’s good to make sure that you are not losing too much financially with regard to your vehicle. In this post, we are going to look at how your vehicle might be causing you financial trouble, and what you can do about it to improve the situation.
Fuel Costs
One of the main reasons that you might be feeling the pinch in relation to your car is that fuel costs can be so incredibly high. This is something that is only going to get higher and higher over time, and it is really important to make sure that you know what to do about it, because otherwise you could lose out significantly over time, and in a way which might cause you a lot of trouble. One step to take is to drive more efficiently, such as braking less and not accelerating quite as hard, and cruising at lower speeds. You should also ensure that you generally care for the car, including the fuel tank, to help it use less fuel over time too.
Damage
Another way that a vehicle can be problematic financially is when there is some damage to it. This might be the result of an accident with another car, driving into something stationery, or even something like someone damaging it while it is parked and you are somewhere else away from the vehicle. If you have damage, you should make sure that it needs to be fixed first – and if so, consider using your insurance. If you need anything replaced, make sure you shop around and look for specific yards for what you need – such as finding the right spot for Holden parts if that is what you drive. This will save you a lot of money – as well as fuel driving from place to place trying to find the right parts!
Repairs and maintenance
It goes without saying that regular maintenance will increase the lifespan of your car, especially as the right professionals will be able to identify problems before they become major (and expensive) issues. As a result, it is in your best interest financially to ensure your car is well-maintained. However, you should also have a strategy in place for when the worst happens, such as if you get involved in a car accident that writes of your vehicle. While your insurance should assist you in this, you might also want to reach out to an accident attorney in your local area. Though this is an additional cost, they will be able to better your financial situation by ensuring that you receive the appropriate compensation following the accident. In addition to covering the cost of vehicle repair, or even replacement, this could also help you with medical bills and other expenses that you may deal with on the road to recovery. For example, you might have to take time off work that would otherwise result in a financial loss.
Tax & Insurance
Finally, there is the issue of those legal requirements – tax and insurance. You can’t avoid paying these, but you can take a few steps to try and keep them as low as possible. When it comes to tax, that is primarily based on the emissions that your car gives off, so you can simply ensure you are driving a car with low emissions – such as a new one or a hybrid or electric vehicle. That will help a little. For insurance, take care not to claim unless you absolutely have to, and again make sure that you are shopping around, because you might be surprised at how affordable it can be if you do so.
As you can see, there are steps you can take to ensure your vehicle does not harm you too much financially.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)