The Frugal Approach to Owning a Vehicle

Many of us long to own a vehicle but dread the prices. We first need to think about a loan or financing options, then it’s on to insurance payments and maybe even road tax. What comes next? Parking fees, maintenance, repairs… the list goes on! However, there is a frugal way to approach owning a vehicle and it consists of many small steps. If you want to own a vehicle but you’re worried about the amount of money you’re paying, then a couple of these tips could perhaps change your mind and help you lower the costs of owning a car.

Look for budget cars

A budget car doesn’t mean something that just costs less. A budget car is something that is readily available as both new and pre-owned, has low repair costs, low insurance fees, low emissions which result in lower road tax, and also great fuel efficiency. All of these features add up together to become a budget car that is not only cheap to run, but also comes with a low price tag. Not every car is born even and there are some vehicles that have excellent fuel efficiency at a low price, and other cars that are even cheaper but don’t offer a good deal on everything else.

Request a loan

Loans are seen as an evil in our lives but they really aren’t that bad. Loans are designed to give us money during an emergency or a period of time when we need a little boost, and if owning a vehicle is a priority then taking out a loan is the preferred way to do it. As long as you can repay it, then you should be fine taking out a loan. Keep in mind that your credit rating will affect your chances, so you can find out how to get a car loan with bad credit before you decide to pick this option. Just remember that you eventually have to pay it back, so don’t take out a loan if you aren’t financially stable.

Lower insurance costs

There are many tricks that will enable you to lower your insurance costs. For starters, if you have a garage then clear it out and use it as a way to store your vehicle instead of keeping it parked outside. Security is a huge concern for insurance companies and the safer your car is, the less likely you are to pay extra for insurance. You can also reduce insurance costs by simply driving less. It sounds counterintuitive to drive less, but keep in mind that you’ve got a higher chance of getting into an accident if you drive for longer periods of time and insurance companies keep that in mind.

Second-hand dealerships

If all you need is a vehicle to carry you from point A to B, then there’s nothing wrong with having a cheap car that you bought from a second-hand dealership. Most pre-owned vehicles are refurbished to a working standard and also come with a lot of additional support. You can get some fantastic prices on cars that are close to being scrapped, and although they may not be the prettiest thing to look at, they definitely work.