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5 Tips For Buying A Car That Will Hold Value

5 Tips For Buying A Car That Will Hold Value

Buying a car is something that you only do every few years. However, when it comes time to purchase a vehicle, the investment is substantial enough that you want to make a smart choice. If you’re currently in the market for your next vehicle – or will be in the next few months – then you’ll want to heed the following tips.

1. Safety is a Big Priority

“The last decade and a half has seen some significant safety improvements with new technologies and systems designed to help prevent collisions,” says John R. Quain of VehicleHistory.com. “Many of these important safety features will be mandatory on new cars in the future—but they can already be found in used cars on the market.”

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When you purchase a vehicle, there are two primary points of value you should consider: (1) The features that are valuable to you at this very point in your life, and (2) The features that will be valuable in three, five, or ten years when you decide to sell the vehicle.

We’re only at the cusp of vehicle safety right now. In a few years, many of today’s optional safety features – such as rearview cameras, adaptive cruise control, and side impact airbags – will be required. If your vehicle is going to retain value, it should have these features now.

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2. Never Buy New

Everyone loves that new car smell. And there’s nothing like knowing you’re the first one to own a vehicle. However, common sense says that you should never buy a new vehicle. The moment you drive a vehicle off the lot, it loses roughly 11 percent of its total value. On a $30,000 vehicle, this means you’re losing $3,300 the second you drive home. After five years of ownership, the car is worth only 37 percent of what you paid for it.

Are you willing to eat this cost?  By purchasing a used car – even one that’s only two or three years old – you can save thousands of dollars. There’s really no reason to buy a brand new car.

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3. Purchase Proven Brands

The marketplace is flooded with lots of different car brands. While there’s nothing wrong with purchasing from an up-and-coming brand, it’s much more sensible to buy a known brand name. You can’t go wrong with brands like Toyota and Honda. These names are synonymous with quality and reliability. Not only does this (hopefully) mean you’ll have fewer problems with maintenance, but it’ll help when you when you decide to sell in the future.

4. Don’t Get Caught Up in Superfluous Details

What do you think is going to add more long-term value to a vehicle: an upgraded engine or heated seats? While the latter feature may be more noticeable on the front end, a superior engine is obviously going to give a car more value in the long run. Don’t get caught up in superfluous details when purchasing a car.

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5. Put Your Needs First

Finally, here’s one tip that you won’t hear anywhere else: put your needs first. While you may be purchasing with the intention of selling in five years and recouping a sizeable portion of your investment, you have to focus on your immediate needs. This is the only way to buy a car that has any value, and thereby meets someone else’s needs in the future.

Be a Smart Shopper

It takes very little effort to shop for a vehicle. You can always find some dealership or corner lot that will sell you a vehicle for little or no money down. However, it does take some time and effort to be a smart shopper.

Just remember: What you get on the back end of the transaction – safety, reliability, satisfaction, higher future resale value, etc. – makes all of the upfront work worth it.

Featured photo credit: John Lloyd via flic.kr

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Larry Alton

Business Consultant

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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