Most budgets have 15 percent of monthly income set aside for transportation. This hefty amount often seems like a necessary evil for most. By reducing this slice of the spendings pie, you’ll have more money to allocate to other bills or savings. Here are three ways you can save big on transportation.
Buy reliable second-hand vehicles
You’ve saved a large deposit for a car, and now you’re ready to buy. Certainly, buying a used car rather than a new one straight from the dealership makes the most sense financially. Unless you’re buying classic cars for restoration rather than daily use, a vehicle is never an investment. The moment you drive a new car off the lot, it loses significant value.
Though depreciation is a major consideration, going for the least expensive vehicle is often not the best way to save money. Though the upfront out-of-pocket cost may be higher, make sure you spend your money on a car that is reliable and fuel-efficient. You’d be surprised how much an unreliable make and model can cost you in maintenance each year. A gas guzzler will also make a big dent in your wallet.
Some makes and models, such as the Honda Civic, also have a very high resale value. The more you can recuperate the costs of your vehicle, the better.
Regularly shop for insurance
Most people only shop for insurance when they purchase a vehicle and then stick with this company until they go to sell. At a minimum, you should be shopping around for insurance annually. Chances are, you’ll get quotes from other insurance providers that are below what you currently spend.
Shopping for insurance doesn’t mean you need to switch companies regularly. To avoid the paperwork, simply send your new quote to your existing provider and ask if they can do a price match to retain you as a customer. In many cases, your request will be granted. If your insurance company just doesn’t budge, then it may be time to put in that extra effort to switch.
Use alternative modes of transportation
In this day and age, a car often feels like a necessity, and in many cases, it is. Maybe you live somewhere with cold winters and heavy snow, making an SUV with snow tires essential for your safety. Perhaps you live far from your workplace and don’t have any reasonable public transportation options.
Though having a vehicle is non-negotiable in some situations, it doesn’t have to be your primary mode of transportation in all cases. If you have pleasant summers, why not invest in a motorcycle to get to your workplace? Though you’ll need to invest in some gear, such as BMW motorcycle gloves, the low cost of insurance and fuel more than make up for it.
Bicycles, scooters, and roller skates are also viable transportation options. Other than the out-of-pocket cost for the equipment, you’ll spend nothing on fuel or insurance. You don’t have to use these to get to work every day, but in the summer months, they’re an excellent option for running to the grocery store or visiting a nearby family member.
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