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The Financial Side of Car Ownership

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Car ownership is a pricey thing, from buying a car to selling it. It costs money and like everything, the car has a timeline. From the beginning of when you or your family purchases a new car, to maintaining the car in between, and then to it’s eventual sale, there are a number of stages to car ownership and all are costly. Your job as the car owner or joint-owner is to keep the car running and to spend as little as possible on things you could have avoided with a bit of care. Cars cost a lot of money and this article is here to help you with that!

Buying A Car

Buying a car is a big deal and an expensive deal. You should try to avoid buying a car when you NEED a car, as this will limit the time available to you to conduct proper research. Research is crucial with anything, including buying cars, and if you are rushing about you could be sold an expensive dud—especially when buying used. Lots of people prefer to rent cars as it can get you a good model for a low cost, you just don’t own the car. This is great, but there are plenty of circumstances where it is simply preferable to own the car outright. The key to buying a car is to read up, test drive, and don’t corner yourself to one model. There are plenty of ways to buy cars especially with the internet so take the time to shop around and buy the car that is right for you at the best price point possible.

Finance plans are available, and cars can be purchased on a rent-to-buy scheme. Just ensure you can keep up with the monthly payments, otherwise it will do heavy damage to your credit score and the car might be repossessed.

Owning A Car

Now you’ve got your car, this is where the hard work begins. Usually, your car will eventually be sold if you own it. In order to get as much money as you can for your car, you’re going to have to keep it in good working order. The sale of a car is usually used to boost finances for a new car, so it’s especially important that you get a good return, especially when car values plummet as quickly as they do. Get it checked by a good mechanic often to ensure the car is working ok. There are a number of issues that need to be fixed throughout the car’s lifetime and the majority of these can be done. Now, all of these issues can be expensive to deal with, but ignoring them will only increase the price of repairs as well as decreasing the lifespan of the vehicle.

car ownership

Credit: Flickr

Selling A Car:

When the times comes to sell your car you won’t need to be much of a salesperson if your car actually works.

If you’ve kept your car in good nick, you can expect a decent bit of cash back, but you won’t make a profit. Car’s aren’t great investments, but can certainly be worth a fair bit of money if you can keep them in order. That’s why the ownership phase of this is so important. When you want to sell your car, you need to ensure the car actually works and the cheapest way to do that? It’s to care for your car when you are using it. If you car is in bad shape when you are looking to sell, you’re going to spend a lot of money getting it up to scratch which will negate the money gained from the sale.

 

Finances are all around you when it comes to cars, but they don’t have to be complicated. Buy cheap, look after your car, and sell it well and you won’t lose too much money!

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