Your car, “old faithful” is paid off or almost paid off. You toy with the idea of buying a new one but would really like using that monthly money for other things. You like the look and smell of a new vehicle, we all do, but does anyone really like the payments that come with it? In today’s economy people are thinking twice before financing a new vehicle that they may be able to do without until times are more stable. Taking better care of your current car definitely makes a difference in the long run when it comes to your finances.
“We advise our clients that if they want a 10 percent increase on their investments every year, they need to cut down on their expenses. A new automobile is, for most people, their second biggest investment next to a home, so a great way to save money and increase financial assets is to hang onto their current vehicle rather than buy a new one every few years. Budgeting for and doing preventative maintenance on your car is one of the best ways to cut your costs and keep your car.”
~Terry Mulcahy, vice president of investments for R.W. Baird
The Car Care Council estimates that over $60 billion each year is not being spent on vehicle maintenance that should be! This tells us that consumers are not protecting their investment and more importantly, there are a lot of unsafe vehicles on our nation’s highways. We’ve all driven behind a car that is spewing black smoke as it meanders down the expressway. It isn’t pleasant for the rest of us sharing the road with them and it is bad for the environment plus we know a costly repair is in their future if they don’t take care of the problem right away.
Quarterly preventative maintenance and the occasional repair, costs so little when compared to monthly payments on a brand new car. A maintained car saves you money in gasoline, too! It is more reliable and more valuable when you decide to get a new car. Not only does preventative maintenance benefit you financially, it is a great way to have a ‘greener’ car without the expensive car payment to go with it! When your car is paid off, it is in what we call the ‘Cinderella Era’ and this is when your car becomes an asset to you if you keep up with the routine maintenance and repairs.
A Runzheimer International study shows that trading a vehicle every eight years instead of every four can save more than $2,481.75 a year after the payoff. That includes repairs and maintenance, license, registration, taxes and insurance. In this economy that is good news! If dollars and cents are as important to you right now as they are to most of us, take care of “old faithful” and “old faithful” will be there for you!