Do you have an over familiar relationship with your car mechanic? If you are finding your car is always in the garage, there’s a good chance you are doing something wrong. In today’s guide, we’re going to walk you through a few of the most common reasons why your wheels are making you cash poor. Let’s take a closer look.
You chose to finance your vehicle
A lot of people use finance to get the car of their dreams – usually paying it off over 3-5 years. But, there’s a big problem with financing. First of all, let’s say you are paying around 6% interest on the price of a vehicle, which cost £30,000. Over the lifetime of a 5-year loan, you can expect to pay an extra £5,000 extra on top of the value of the car. While that might not seem like too bad a deal, you still have to take into account depreciation. Over three years, the typical car drops in value by anything up to 50%. For five years, it can be even more. So, in effect, you will have paid £35,000 by the end of the loan, and may only be able to sell it for £15,000. That’s £20K down the tubes at a rate of £4K a year. Still want to get a car on finance?
You don’t service your car
It’s always good to develop a relationship with your local auto mechanic, of course. You should be getting an MOT every year to remain within the law. But, you should also give it a service once a year, too. An MOT is just the bare minimum – it won’t give your vehicle a full inspection. Regular servicing can help you spot minor problems that could turn into serious and expensive issues. In other words, it’s going to save you cash.
You don’t look after your car
You’ll need to learn to take care of your vehicle, too, if you want to save money. Replace your tires regularly. Keep them at optimum inflation, too – you will find the details in your owner’s manual. In fact, the owner’s manual will tell you everything you need to know about keeping your car in excellent condition. It will tell you when you should change your oil, how to perform basic maintenance tasks and many other little performance boosters. Read it – it will save you a lot of money.
You can’t drive properly
Do you find yourself thrashing your car around like a Formula 1 driver? If so, you are going to end up with more problems you can afford to deal with. Your fuel costs will skyrocket, for a start, and you will put pressure on every aspect of your engine’s performance. You’ll wear out your brakes quicker, too. If you are struggling to get to grips with driving the right way, try going on a driving refresher course. They can be excellent value – and might just save you the costs of replacing your run down car!