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Things to Think About Before Buying a New Car

Things to Think About Before Buying a New Car

In my 13 years of licensed driving, I’ve been lucky enough to only have gone through two cars. I’ve watched many friends go through one automobile after another for a variety of reasons: the cost caught up with them, it didn’t fit their needs, or it broke down beyond repair. A lot of the time, these issues could have easily been avoided if they had taken the process of buying a car a little more seriously.

I don’t consider myself a “car guy” by any stretch, but because of this I tend to go overboard when researching a new vehicle. When I invest my hard-earned money into a new car, I want it to last me a while. Knowing this, I’ve always taken the following into consideration:

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Purpose

What are you going to be using your new car for? Will you be the only one using it? Do you have children who constantly need a ride to events, parties, and practices? Will you need to drive long distances for work? Do you need to transport tools and other equipment for your job or hobbies? These are all questions you should ask yourself before you buy a new car, truck, or van, rather than going for what feels right at the time. Think about what you’ll be doing with your new automobile, and you’ll avoid having to give it away for much less than it’s worth when you realize it doesn’t fit with your lifestyle.

Need it or want it?

Along with figuring out why you’re in the market for a new car, think about whether you absolutely need one, or if you’re simply looking for an upgrade. On the one hand, if your current car is on its way out, you need to lower your standards at least a little bit when looking for a replacement. You don’t want to end up stranded with no way of getting to work, so you unfortunately don’t have the luxury of “shopping around.” However, you still don’t want to settle for “what works for now,” as it’ll likely end up costing you in the long run. On the other hand, just because you’re in a position to buy a new car because you want one doesn’t necessarily mean you should hold out for whatever is considered the absolute top of the line. In either case, make sure you make an informed decision and avoid splurging on the first thing on four wheels you see in the lot.

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Monthly cost

It shouldn’t come as a shocker to you that your car makes up a large part of your monthly expenses. Whether you’re buying or leasing a new car, don’t let a low monthly payment blind you to the hidden costs that come with an automobile. You’ll have to pay interest on your loans and monthly insurance costs, not to mention gas and other maintenance fees over the years. Failure to take all of these into consideration will almost certainly result in you giving your car away for less than its worth, while opting for something “a little more manageable.”

Safety features

This should actually be the first thing you take into consideration when buying a new car. Automobiles come with more safety features than ever before nowadays, so there really is no excuse for buying a car that you don’t feel safe driving. Seatbelts and airbags are commonplace nowadays, and the newer features – rear-view cameras, alert systems – are becoming more and more prevalent as well. Even with these accommodations, you should still check out the crash rating for your potential new automobile. While ignoring the other items on this list might set you back monetarily, ignoring the safety rating of your car could cost you much more.

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Add-ons

In addition to all the new safety features new cars come with, they also include a bunch of other extras that make one model more appealing than another. Bluetooth, Wi-Fi hotspots, iPhone connectors… all of this seems really awesome – and, well, it kind of is. However, is “awesome” worth the extra cost? Make sure you analyze the difference between the base price and the price for an all-included model, and think about whether or not you actually need your text messages to be read aloud to you on your ten minute drive home from the store. Then again, like I said: If you can afford it, and you’ve earned it, then go for it!

Featured photo credit: 2014 Proton Perdana 2.4P / Manoj Prasad via farm4.staticflickr.com

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Matt Duczeminski

A passionate writer who shares lifestlye tips on Lifehack

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Published on November 11, 2020

10 Best Ways to Save Money Faster and Smarter

10 Best Ways to Save Money Faster and Smarter

People love to talk about budgeting, reducing spending. and investing. But unfortunately, talk is cheap, and poor money management is expensive. It’s easy to talk about the best way to save money, but putting it into practice is a different thing.

What people need to talk about is the practical and efficient ways you can quickly save money to accomplish your goals. After all, they don’t teach this stuff in school.

Here are the 10 best ways to save money faster and smarter.

1. Cancel All Your Subscriptions

Yes, all of them.

Okay, you can keep your wifi and trash. But other than that, cancel all your monthly subscriptions for one month. You will survive, I promise. Better yet, you will realize you won’t miss all of them.

Now that you have had 30 days to examine what you really missed and what you never thought twice about, you can add some of them back in. The others? you never have to think about them again.

This is something you can and should do with every part of your life. If it’s clutter, cancel it. Being able to step back and see what is cluttering your life and what is excelling your forward helps improve your quality of life and financial standing.

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2. Automate Savings From Your Paycheck

Many of us are so excited about getting a new job that we rush through the paperwork during the hiring process. Good news for you, I have had lots of jobs so I have seen it a million times.

There is an option for a portion of your paycheck to go directly into a secondary savings account. This is by far the most effective way to save money every month. We tend to spend most of what we have. So, if we take it off the top first, then it’s less likely to be spent. Just head over to HR and ask. It will only take two minutes.

3. Cancel the Happy Hours for the Rest of the Pandemic

We are in the middle of a global pandemic, which means that there is no better time to buy some drinks from the local store and stop shelling out $5 a drink at the local cocktail bar. When we look back at our bank statements, we are always shocked that fast food and alcohol can add up so quickly. You can easily save a couple of hundred dollars just by taking this step.

A great exercise is to print out your last bank statement and highlight all the areas of alcohol and fast food. The amount may surprise you and make you think twice about that old fashion.

4. Online Grocery Shopping

Some people think online shopping increases the amount they spend. For the most part, I would agree—except for this category.

Online grocery shopping is now a no-brainer, though. Whenever you walk through a grocery store, two things always happen: you always grab impulse items, and you never know the total of your cart until you checkout. This means that we always spend more than we originally planned.

With online shopping, you can see your total as you add items to your cart. You are way less inclined to make those impulse purchases and because of that, I would venture to say that you could even pay to have them delivered to your door and still save money each month by choosing online grocery shopping.

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5. Get a Famzoo Debit Card

This is something my wife and I swear by, and it’s great for the entire family! Famzoo strictly exists to help families and kids budget their money better. Each month, my wife and I have an allotted amount loaded onto our pre-paid Famzoo debit card. This amount has changed every year depending on promotions, kids, stage of life, etc.

The important part is that when you give yourself the freedom to spend a certain amount, you are more likely to only spend the allotted amount. Think of it as a diet. If you are counting calories, you are more likely to stick close to the amount you set. You can also look for some tips online to better stick to your family budget.

6. Purge

This is actually my favorite to do, and it is actually one of the best ways to save money. Raise your hand if you have ever moved. Okay, so everyone.

When we move, we are always amazed at how much junk we have acquired. I have found that about every 6 months, I can find a couple of boxes to sell online of things that we never use. This not only gives you so extra quick cash, but it also keeps your house more tidy and organized.

Now, go clean out that garage!

7. Amazon Subscribe and Save

32! That is how many items I have setup on amazon subscribe and save. Let me explain.

This sounds expensive, I know. But it actually saves us hundreds of dollars per year! We all need toothpaste, shampoo, razors, laundry detergent, toilet paper right? This feature is truly a triple threat. When you have more than 5 items on subscribe and save, you automatically unlock the max savings for every product on your list. This can be up to 20% per item!

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Now, even better is that it ships straight to your door on the exact day you want the item, maybe monthly or maybe you only need it every 4 months. This way, you never have too much or never run out. Either way, it’s totally customizable.

Lastly, there is no contract for any items, which means you can switch brands or items at any given time at no cost. My advice: every single staple item should be on your subscribe and save.

8. Rewards

This may ruffle some feathers, but if you are using your debit card for purchases, you are missing out on free money! We have this notion that credit cards are evil but in reality, they are the same piece of plastic as your debit card.

How you use it can be bad, don’t get me wrong. But if you want my opinion though, ditch the debit card and get a rewards credit card. Use it just like you would your debit card and make sure to pay it off as soon as the statement comes in!

Just to give you an idea of how powerful this can be in terms of money, here are some things that our miles have paid for:

  • 4 nights in Vail with Flight
  • Rental car in Vail (convertible might I add)
  • Flight to Ireland
  • Flight to Hawaii
  • Multiple staycations at very nice Hotels

That’s roughly about 7 thousand dollars in travel expenses so far! Remember that the credit card is just a tool and can be one that benefits you if you use it wisely. Ironically, this can be an effective way to save money.

Pro tip: If you don’t trust yourself carrying around a credit card, then set up all your monthly bills with your credit and leave it in a drawer at home. This way, you rack up miles but don’t get tempted to overspend.

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9. Vacation With Friends

Now, I know travel is hard right now but what a perfect time to go grab an Airbnb in the woods with a couple of friends and detox from the world right now!

Vacationing alone can be pricey and get rather boring quickly, but if you split lodging and set out for a road trip, it can become affordable quickly! For a couple of hundred bucks apiece, you can have one of the most relaxing vacations ever. Don’t forget to pick up your food at the local grocery store to avoid eating out every meal!

10. Make a Budget

When is the last time you updated your budget or made one for that matter? Making a budget is like writing down your goals. If you don’t make a budget, then you will struggle to save.

How can you know if you are spending wisely if you are not tracking everything?

Our advice would be to get a finance app like Mint, Every dollar, or personal capital. All these apps are free and do a tremendous job of tracking spending and budgeting. I still am old-school and have an excel spreadsheet which I do highly recommend.

Work Smarter, Not Harder

The entire goal is to boost your bank account while reducing the effort required. Efficiency is the name of the game, and automation is the key player. Luckily, we live in a world that has more perks than we can ever take advantage of. But if I were to choose a few, it would be the ones above.

Taking on all 10 of these steps may seem a little daunting. You can first try to pick three of your favorite and start there. Saving money doesn’t have to be a chore as long. As we use the tools correctly, it can be quite effortless. And now, you have a great blueprint to get started!

More Tips on Saving Money

Featured photo credit: Sharon McCutcheon via unsplash.com

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