Written by a Guest Blogger
Running a car is an expensive business; first you have the cost of actually buying a car, then you have maintenance costs, insurance, fuel and the list goes on. So why do you do it? Well, most of us have little or no choice in the matter; you need a car to travel to and from work, to visit family and friends or to ferry the children from one place to the next.
This begs the question, if you have to run a car, then what measures can you take to reduce its depreciation and save money in the long term. Here’s some practical advice on how to get the most out of your hard-earned cash.
One way to avoid losing money through depreciation altogether is to go down the car leasing option. Leasing a car is becoming more and more popular because you get a brand new car without any hefty upfront costs and because it’s a brand new car it will have a warranty that will cover the costs of breakdown repairs. Also, new cars don’t need MOTs and are unlikely to need money spending on them due to wear and tear. And of course when your contract runs out, you simply hand the car back to the lease company without having to worry about selling it on.
If leasing is not for you, then there are several ways in which you can help reduce the depreciation on your car.
What to do
First, before you purchase a car check online to see if the car you have in mind is reliable. Once you have a car look after your car properly, this means regular servicing and upkeep of the service history and trying not to run up the mileage too quickly. Keeping your car for longer, depreciation occurs most quickly in the first three years and then slows down. Finally, buy a car with some green credentials, these are lower on fuel costs and cost less to tax.
What not to do
Don’t buy a car in an unpopular colour, it will depreciate quicker than a car in a popular colour like white or black. Avoid unpopular makes and models, they are cheaper for a reason and don’t pay over the odds for a car that has lots of fancy gadgetry and technology as these quickly go out of date.
It is difficult to avoid spending more money than you would like to on motoring, but being sensible and considering your options carefully will help you get the best value for money.