It’s all too easy for the costs that we take for granted to run away from us. When we lose track of expenses, it can steadily put us in a worse and worse financial position. Then, all it takes is one sudden surge of unexpected costs and we can be thrown into a real debt crisis. Out of all your assets and possessions, your car could be the primary culprit behind both risks. Here’s how you stop that ticking time bomb from really going off.
Borrow wisely
Unless you got stacks of cash lying around, it’s very likely that you’re going to have to take out a car loan when you buy one. Ensure that you’re taking out a loan that you can afford. Check your credit rating and spend some time repairing it if necessary. Don’t borrow more than you can afford to pay off, scanning the market for deals and calculating your monthly payments well in advance.
Insure sensibly
Car insurance is mandatory by law, so it’s not a cost you can skip. You can avoid some of the biggest risks associated with the market by using an insurance broker, however. A broker can not only help you find a good deal, they can help you avoid being under-insured so that when you actually need to use your policy, you know you can rely on it.
Accidents are expensive
The costs of repairs and the jumps in your insurance premiums can make accidents really costly. Finding the right legal representation like a lawyer that can help when you’re injured by a trucker, can help your chances of making sure you’re not footing the bill by yourself if the accident wasn’t your fault. Naturally, you should be making sure you’re not endangering yourself by driving while distracted or drowsy, too. If you factor in the chance of injury and being taken out of work, those costs can really start to skyrocket.
Track those running costs
Thorough maintenance can also help you stay safe on the road, but what do you do about rising garage costs? You can do a little more DIY upkeep, for one, and choose cars that are more reliable in future. You should also figure out your average monthly costs for car maintenance and repair and set up a budget, so you have the money set aside and you’re not dipping into your other funds. There are plenty of car-owner apps that can help you better monitor the costs of maintenance and other running costs, so you can see your most expensive habits.
Consider driving less
Fuel consumption is one of those habits and there’s an easy way to cut it down. If it takes you less than half-an-hour to walk to a destination, then leave the car behind. Not only do you cut on the wear and tear that you need to repair later and the costs of gas. Every time you drive, your car loses a little more value, so find more opportunity to use your feet instead.
Cars can be a lot costlier than we anticipate. It’s up to you to make sure that you’re monitoring those costs, ensuring you get the best deals possible, and dealing with sudden costs in the most effective way possible.
