Okay, for some people that one hundred grand estimate will be ever so slightly too high. The point we want to make is that cars are expensive. So expensive in fact that it makes sense to look after them. If your car is destroyed, damaged or lost then you’ve lost a lot of money.
Sure the insurance will cover some of the cost. But the fact about insurance is that it’s not exactly a get your money back guarantee. It’s more; you’ll get the money back this time, and we will charge you more annually.
You see, over time, you’ll still be paying for the amount of money that you lost when you crashed the car. Not to mention that if you don’t look after the vehicle, depreciation is going to be a real killer.
You might think that if you don’t crash, you’ll never lose the money you spent on the vehicle.
Unfortunately, a car has a depreciation rate that’s nearly ten times that of a computer. Thousands will be shaved off the value of your car every year, even if it’s kept in great condition. So, how can we avoid losing the cost of our car?
Don’t Buy It New
Probably the best idea and one that’s constantly recommended by financial experts. Never buy a car brand new. If you do, you might as well just throw your money down the drain.
Think about it; you might buy your car for forty grand. In a few years, it’s going to be worth twenty. What do you get for buying a car brand new?
Well, you get an expensive insurance premium and a vehicle that’s guaranteed to work. But if you know the checks you’ll never buy a second-hand car that doesn’t work. You just need to be a smart buyer.
Don’t Make Any Silly Mistakes
There’s no guarantee your car loses it’s value because you crash it. Maybe it has no value because you can no longer drive it. That’s what happens when you get enough points to have you license taken away.
You should think about that every time you drive after one beer. Technically, depending on the brew, it’s probably legal for you to drive after one beer.
But is it safe?
That’s a different question because we all respond differently to alcohol.
For instance, think about how well you could function after your first ever taste of alcohol. Think back all those years, to fourteen, fifteen or sixteen. We wouldn’t be too surprised to learn that you walked straight into a wall.
That’s the problem, you see. No one is the same when it comes to booze. It why so many people need experts like Scheiner Law DWI lawyers to get them out of trouble. It’s easy to think of drink drivers as irresponsible road demons. But they are probably a lot closer to who you are than you would like to admit.
Spick And Span
Lastly, you can’t beat depreciation. It’s just not possible. What you can do is reduce it.
If you keep your car looking shiny and new, you won’t have to worry about a massive reduction in value. But, if you want to avoid losing too much money.
Just make sure you sell your car after a couple of years at the most. If you keep it in good condition, this way you’ll lose virtually no value.
Views presented in the article are those of the author and not of ED.