Financial Wellness Starts With Smart Automotive Decision-Making
January is Financial Wellness Month, the perfect time of year because we can start fresh when it comes to putting all of our finances on the table and making a resolution to get them in order and make them more manageable.
We resolve to save more, spend less, be more frugal when it comes to spending, and work hard at sticking to a realistic budget.
If your resolution this year is to improve your personal finances or you need to make some positive changes with your money, think about making smart automotive decisions which could have an immediate impact on your monthly budget and down the road when you learn how to properly manage your vehicle.
When it comes to making big purchases, a vehicle is often the biggest investment someone will make second to their home.
Saving money towards a big purchase can come in handy.
When it comes to buying a pricey item, it is important to think ahead and plan accordingly.
Your best bet for large purchases is to use cash, not credit cards or loans.
Obviously this is not always possible (or at least for the entire purchase), so planning out the future of the purchase is vital.
When you don't buy a large purchase with cash, it is a good idea to have money saved for a good down payment at the very least.
Before you sign any paperwork, be sure that you can afford the loan payments.
If you don't have money for a down payment or you're unsure if you can afford the payments, then you are not ready to make the purchase.
According to financial experts, a hypothetical situation could be as follows.
You see a $20,000 vehicle that you are interested in, but you do not have the cash to buy it outright.
You decide to take out a loan.
The down payment should be about 20-25% of the total to make ends meet.
That means you need to save up $4000-5000 for your down payment alone.
Then, finance the rest and make sure you can afford the payments.
When calculating what your payment will be, you need to take sales tax and interest rates into account as well as the term of the loan.
Smart financial decisions also come after the vehicle is actually purchased.
Preventative maintenance and keeping a vehicle until after it is paid off is a great way to save money down the road, but getting there takes time, money and responsibility.
With the cost of new cars rising yet again, buying a previously-owned (or used) car is a good decision for many people.
New cars lose a large chunk of their value as soon as they're driven off the lot; and many people find that used vehicles are a smart financial alternative.
The good news is that vehicles are made better than ever, so a used vehicle could be not only a good value, but more affordable too.
If you're in the market for a new vehicle, there are definitely some things that you should keep in the back of your mind when you are shopping around.
For example, you can start by creating a list which states your wants, needs, expectations and things that you may be able to live without.
You also need to consider the price range that you can afford.
Narrow down your selection by researching makes and models and also check for different purchasing options.
Be informed, and know the true value of the vehicle.
When you find a specific vehicle, it is also important to obtain VIN numbers and check out the vehicle history.
Online reports are often available to help with your decision-making.
When it comes to buying a new vehicle, you need to make sure that you can afford it first and foremost.
How will you know? Well, whether you are a new buyer or experienced, it is always important to remember that when you finance, auto finance experts say that you should figure $25/month for every thousand dollars that you borrow for 48 months, and $20/month on 60-month financing.
Furthermore, it is said that every $10,000 borrowed is about $250/month for four years, and $200/month for five.
Remember, however, that this is just the baseline and it is imperative to also configure monthly financial responsibilities like insurance, gas, and routine preventative maintenance.
There are also many unknown and unforeseen financial burdens of owning a vehicle, both used and new.
So, how much does it truly cost to own and drive your vehicle? The U.
S.
Department of Labor estimates that the average household spends almost as much on their vehicles as they do on food and healthcare for their entire family added together.
Some of the common purchasing costs and fee include gas, motor oil, registration fees, sales tax, car insurance, and breakdown or extended insurance coverage, mechanical repairs, and much more.
Of course, all of these fees and costs vary based on your state, region, vehicle, rates, and the type of coverage you choose.
Gas totals are based on how much drive.
No matter what, you should still expect to spend thousands of dollars in addition to the baseline price thanks to all of these variables.
Hybrid vehicles are taking over the market with almost all manufacturers presenting hybrid models in the next few years.
But are they worth it in the long run? Can they really save you money? Hybrids will certainly save you money on gas, but it is still important to consider the list price and do some math before you sign the paperwork.
For those who drive often and far enough, you should be able to make your money back quickly by investing up front and saving as you drive.
Hybrids have the ability to positively affect both your finances and the environment.
Preventative, routine maintenance are common services that all vehicles require which could make a huge difference in the long run when it comes to financial wellness.
A little preventative maintenance can go a long way - it is incredibly important to keep up with the necessary maintenance of your vehicle.
It is the single most important thing you can do for your vehicle to ensure that it continues to run at its optimal performance and down the road, you will certainly save money on repairs.
The maintenance of your vehicle is a planned schedule of repair or routine actions aimed at the prevention of future breakdowns or mechanical failures.
Preventative maintenance also aims at extending the life of your car; by reducing repairs, it can save you money and keep you safer in your vehicle.
Automotive experts believe that say the key to keeping vehicles running well today and down the road, is routine preventive maintenance.
Don't put these routine services on the back burner, however! Too many people wait to have these routine services done because their car shows no signs of needing them.
A recent study from the Car Care Council found that 38% of vehicles had low or dirty engine oil, 54% had low tire pressure and 19% needed new belts.
These basic services can turn into exponential costs when we wait to act on them.
Preventative maintenance clearly saves money.
In fact, one study showed that for every dollar you spend today on maintaining your vehicle it would be the equivalent of 4 or 5 dollars in repairs down the road.
Unfortunately, the average cost of repairs has risen in recent years.
According to CarMD, the total average repair cost in the U.
S.
is $305.
56, including $202.
28 for parts and $103.
27 for labor.
Replacing spark plugs can average $311, replacing a catalytic converter can cost upwards of $1001, and replacing the oxygen sensor can average around $239.
4 Keeping a vehicle after it is paid off can also save money down the road.
It requires taking a good look at your personal situation and a little more math.
Even if you spend a couple hundred dollars every few months on routine maintenance, it would be less than a new car payment for either a new car or a used vehicle.
The bottom line is that it is your budget and you need to find what works best for you.
A vehicle properly maintained a few years after the payments have ended could save a person $20,000-30,000.
That is a lot of money that could improve your financial wellness over a short amount of time.
Not to mention that paying off a vehicle can feel great, too.
Financial experts suggest that once your vehicle is paid off, you can save money by setting aside the amount of the payments.
If you could afford it then, you can afford it now.
As a benefit, today's vehicles are made to last longer and go farther.
Maintain your vehicle now so that you can maintain your finances later in life.
Financial wellness starts with smart vehicle ownership and decision-making.
We resolve to save more, spend less, be more frugal when it comes to spending, and work hard at sticking to a realistic budget.
If your resolution this year is to improve your personal finances or you need to make some positive changes with your money, think about making smart automotive decisions which could have an immediate impact on your monthly budget and down the road when you learn how to properly manage your vehicle.
When it comes to making big purchases, a vehicle is often the biggest investment someone will make second to their home.
Saving money towards a big purchase can come in handy.
When it comes to buying a pricey item, it is important to think ahead and plan accordingly.
Your best bet for large purchases is to use cash, not credit cards or loans.
Obviously this is not always possible (or at least for the entire purchase), so planning out the future of the purchase is vital.
When you don't buy a large purchase with cash, it is a good idea to have money saved for a good down payment at the very least.
Before you sign any paperwork, be sure that you can afford the loan payments.
If you don't have money for a down payment or you're unsure if you can afford the payments, then you are not ready to make the purchase.
According to financial experts, a hypothetical situation could be as follows.
You see a $20,000 vehicle that you are interested in, but you do not have the cash to buy it outright.
You decide to take out a loan.
The down payment should be about 20-25% of the total to make ends meet.
That means you need to save up $4000-5000 for your down payment alone.
Then, finance the rest and make sure you can afford the payments.
When calculating what your payment will be, you need to take sales tax and interest rates into account as well as the term of the loan.
Smart financial decisions also come after the vehicle is actually purchased.
Preventative maintenance and keeping a vehicle until after it is paid off is a great way to save money down the road, but getting there takes time, money and responsibility.
With the cost of new cars rising yet again, buying a previously-owned (or used) car is a good decision for many people.
New cars lose a large chunk of their value as soon as they're driven off the lot; and many people find that used vehicles are a smart financial alternative.
The good news is that vehicles are made better than ever, so a used vehicle could be not only a good value, but more affordable too.
If you're in the market for a new vehicle, there are definitely some things that you should keep in the back of your mind when you are shopping around.
For example, you can start by creating a list which states your wants, needs, expectations and things that you may be able to live without.
You also need to consider the price range that you can afford.
Narrow down your selection by researching makes and models and also check for different purchasing options.
Be informed, and know the true value of the vehicle.
When you find a specific vehicle, it is also important to obtain VIN numbers and check out the vehicle history.
Online reports are often available to help with your decision-making.
When it comes to buying a new vehicle, you need to make sure that you can afford it first and foremost.
How will you know? Well, whether you are a new buyer or experienced, it is always important to remember that when you finance, auto finance experts say that you should figure $25/month for every thousand dollars that you borrow for 48 months, and $20/month on 60-month financing.
Furthermore, it is said that every $10,000 borrowed is about $250/month for four years, and $200/month for five.
Remember, however, that this is just the baseline and it is imperative to also configure monthly financial responsibilities like insurance, gas, and routine preventative maintenance.
There are also many unknown and unforeseen financial burdens of owning a vehicle, both used and new.
So, how much does it truly cost to own and drive your vehicle? The U.
S.
Department of Labor estimates that the average household spends almost as much on their vehicles as they do on food and healthcare for their entire family added together.
Some of the common purchasing costs and fee include gas, motor oil, registration fees, sales tax, car insurance, and breakdown or extended insurance coverage, mechanical repairs, and much more.
Of course, all of these fees and costs vary based on your state, region, vehicle, rates, and the type of coverage you choose.
Gas totals are based on how much drive.
No matter what, you should still expect to spend thousands of dollars in addition to the baseline price thanks to all of these variables.
Hybrid vehicles are taking over the market with almost all manufacturers presenting hybrid models in the next few years.
But are they worth it in the long run? Can they really save you money? Hybrids will certainly save you money on gas, but it is still important to consider the list price and do some math before you sign the paperwork.
For those who drive often and far enough, you should be able to make your money back quickly by investing up front and saving as you drive.
Hybrids have the ability to positively affect both your finances and the environment.
Preventative, routine maintenance are common services that all vehicles require which could make a huge difference in the long run when it comes to financial wellness.
A little preventative maintenance can go a long way - it is incredibly important to keep up with the necessary maintenance of your vehicle.
It is the single most important thing you can do for your vehicle to ensure that it continues to run at its optimal performance and down the road, you will certainly save money on repairs.
The maintenance of your vehicle is a planned schedule of repair or routine actions aimed at the prevention of future breakdowns or mechanical failures.
Preventative maintenance also aims at extending the life of your car; by reducing repairs, it can save you money and keep you safer in your vehicle.
Automotive experts believe that say the key to keeping vehicles running well today and down the road, is routine preventive maintenance.
Don't put these routine services on the back burner, however! Too many people wait to have these routine services done because their car shows no signs of needing them.
A recent study from the Car Care Council found that 38% of vehicles had low or dirty engine oil, 54% had low tire pressure and 19% needed new belts.
These basic services can turn into exponential costs when we wait to act on them.
Preventative maintenance clearly saves money.
In fact, one study showed that for every dollar you spend today on maintaining your vehicle it would be the equivalent of 4 or 5 dollars in repairs down the road.
Unfortunately, the average cost of repairs has risen in recent years.
According to CarMD, the total average repair cost in the U.
S.
is $305.
56, including $202.
28 for parts and $103.
27 for labor.
Replacing spark plugs can average $311, replacing a catalytic converter can cost upwards of $1001, and replacing the oxygen sensor can average around $239.
4 Keeping a vehicle after it is paid off can also save money down the road.
It requires taking a good look at your personal situation and a little more math.
Even if you spend a couple hundred dollars every few months on routine maintenance, it would be less than a new car payment for either a new car or a used vehicle.
The bottom line is that it is your budget and you need to find what works best for you.
A vehicle properly maintained a few years after the payments have ended could save a person $20,000-30,000.
That is a lot of money that could improve your financial wellness over a short amount of time.
Not to mention that paying off a vehicle can feel great, too.
Financial experts suggest that once your vehicle is paid off, you can save money by setting aside the amount of the payments.
If you could afford it then, you can afford it now.
As a benefit, today's vehicles are made to last longer and go farther.
Maintain your vehicle now so that you can maintain your finances later in life.
Financial wellness starts with smart vehicle ownership and decision-making.
Source...