Six Ways to Keep Car Costs Down (Whatever the Size of Your Family)
For many people, transportation is a big monthly expense – often the biggest category of spending after housing, healthcare, and food.
When you have a family, just getting everyone to and from school, sports, and day trips can add up – not to mention the costs of commuting.
So how can you keep car costs down? Here are six key things to do:
#1: Recognize ALL the Costs of Owning a Car
You might think that your family budget can stretch to 500+/month for a shiny new car … but it’s important to remember that this only covers the car itself.
You’ll also be paying for gas, insurance, and maintenance – and these costs can add up fast, too.
While it may sound a bit obvious, you do need to factor all the costs in before making a decision about the monthly car payments you can afford. You can get insurance before buying a car (and in fact, you should!) – so once you’ve picked out the car you’re going to buy, shop around and make sure you’ve got a great insurance policy in place.
#2: Buy Rather Than Lease If Possible
Leasing a car means you always have a relatively new car to drive, at a monthly cost. But your payments never end (unless you want to give up driving altogether). You’re just renting the car. You never actually pay it off.
Buying a car, whether through financing or through cash, means that you actually own the car. Of course, if you took out a loan, you’ll need to pay that back – normally through a monthly payment.
#3: Opt for a Second-Hand Car
Even a relatively new second-hand car will be a lot cheaper than a brand new car that’s never been driven before. This means buying second-hand is ideal for families: let’s face it, with kids in the back seat, your car isn’t going to stay shiny and spotless for long!
You might be able to afford to pay cash for a second-hand car. If so, do it: that way, you won’t be paying any interest on a loan. Keep in mind that the car will depreciate in value over time – so you may not be able to recoup much of your money when you sell it.
#4: Consider Reliability and Fuel Economy
Fuel costs can really add up, so when you’re choosing a new car, check out statistics about the fuel efficiency. The more you drive per year, the more important this is.
As a parent, you’ll also want a family car that’s highly reliable. Not only will this end up cheaper, it also prevents you (and your kids) from getting stranded on a journey.
#5: Carry Out Simple, Regular Maintenance Tasks
There are plenty of maintenance tasks that you can do yourself, like checking your tire pressure – you should do this at least monthly. You can also tackle things like replacing windshield wiper blades and windshield wiper fluid.
#6: Only Have One Car
When you have a growing family and one or both parents working outside the home, it might seem like you need two cars. But the monthly payments on two separate vehicles can add up incredibly fast, and with a bit of pre-planning, you might find that life as a one-car family is much easier than you thought.
Don’t let transportation costs eat a huge hole in your budget. By following the tips above, you can keep your car costs down, meaning you can put aside more money for savings, or budget for more day trips and vacations as a family.
