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Budgeting For Vehicle Purchase Choices

It may not be a pretty ride; the kids may want you to drop them off down the street instead of in front of school. The neighbors may be able to hear you arrive home and you may be on a first name basis with the local mechanic, but you may be driving the best bargain around.

There are two kinds of vehicle owners; those who drive until the wheels fall off and those who believe a new car will change their lives in unimaginable ways. There are merits to both outlooks. The drive it till it drops owner is taking the most frugal path, but the second owner provides those lower cost vehicles the thrifty shopper bargains for. Those bargain shoppers know it is cheaper to buy a whole new engine than take on a new car payment.

The Key To Vehicle Longevity

The biggest determination of how well a car will serve is the maintenance schedule observed by the owner. You should never try to skimp in this area, as it will mean a decreased life of the vehicle. Think of maintenance as an investment in your budgeting for transportation. Don't be penny-wise and pound-foolish.

Make sure you get the recommended oil changes, tire rotations, transmission flushes, and engine tune-ups. It make not seem a smart money move to replace parts when they are functioning perfectly well, but the reason the manufacturer recommends replacement at certain intervals is to prevent more costly repairs later on. For example, a timing belt can run upwards of $600, but if it goes out near the 90,000 mile mark on the odometer (the mileage point at which the change out should be made), it will cost nearly $1,800 to replace the bent valves in the engine as well as the timing chain.

If you are unsure of your vehicle's recommended maintenance schedule, you can log on to MSN's Auto section for a personalized schedule of routine maintenance for your car.

Repairs Versus New Car

There are a multitude of reasons a person would want to get a new vehicle to replace the one they have such as the vehicle does not meet the needs of your current lifestyle, the repair bills are adding up, or you worry about the dependability of your car.

To evaluate meet the needs of your current lifestyle evaluate just what part of your lifestyle the car does not meet. If you have taken up a hobby such as gardening and feel you need a truck to haul that mulch, perhaps you should compare the cost of having the material delivered once or twice a year versus the cost of a payment over the life of the truck note. 

If your compact car is unsuitable for giving guided tours to visiting relatives, consider renting a vehicle. The same solution seems reasonable if you are contemplating a long trip where dependability is an issue. Why incur the expense of a new mode of transportation when the best solution is sitting at the lot of your nearest car rental place.

Do your research. Some rental places offer great deals on weekend packages that include extra mileage or an upgrade to a bigger car. With rental you get the latest model with no worry about repair or maintenance bills, licensing, increased insurance costs or those huge payments. Even at $100 per week in rental costs it is a bargain compared to the purchase of the same car for limited use. I had a friend in San Francisco who never owned a car. The public transportation system there is reliable and cheap while parking space is at a premium. When his family went on vacation they rented a minivan and headed out to the wide-open spaces. They also rented a car for special events such as the month a baby was due or when visitors unable to navigate the public transportation system came to visit. Over the years they have come to know their local car rental agency well and receive flyers with coupons offering them discounts and special incentives to rent again. 

Worry about reliability is not Eventually even a well maintained vehicle will eventually require repairs. As the car ages, those repairs increase in frequency and cost. Put the pencil to the paper. How does the cost of a new car compare to the repairs? Are you going to spend more than $350 a month each month for five years? That is the typical cost of a new car. Now add in the cost of maintenance on that new car, licensing and insurance add to the expense. If you cannot afford the rebuilt transmission on your old car at $1,500, then it is doubtful you would be comfortable making a payment each month on the new car along with the increased expenses.

Experts recommend that you put aside at least $50 per month to go toward repairs. Every car needs repairs and you should be prepared to meet those expenses. If you are worried about the reliability of your current ride, keep in mind that even new cars have issues. A friend of mine was left stranded by her new Neon several times until the mechanic found and repaired the electrical malfunction. Of course it was under warranty so there was no charge for the repair, but it left her unable to pick up her kids after sports practice and loaded with groceries that went bad on another occasion.

Another way to sidestep the reliability issue is by purchasing an AAA membership and carrying a cell phone. Especially in the case of a teenager who must drive a car with questionable reliability, it will give you peace of mind to know that your high school or college aged driver will not have to rely on strangers to provide roadside assistance. 

The upside of needing so many repairs on your car is getting to know your mechanic. Be sure to pay your repair bills on time, send a Christmas card, and let your car-deologist know how much you appreciate their expertise. Then next time your mechanic is under the hood get them to tell you what else will need repairs soon and start saving extra over and above the regular $50 per month.

The Allure Of That New Car Smell

At some point you will begin to consider buying a new or newer vehicle. To make sure this is the best solution there are several steps you can take. The best and most obvious is to write yourself a check each month, for at least three months, for the amount you think your purchase will cost you. Don't forget to figure in the cost of insurance and government fees such as registration, road tax, and inspections. 

Three months may seem an interminable time to wait, but this will allow time for at least on of life's unforeseen emergencies to crop up and will give you time to research your potential purchase. 

Get on line or visit your local library for information on various vehicles. Research the mileage, reliability, resale value, and safety rating for the cars you would consider purchasing. Consumer Reports is an unbeatable resource in the search for information on vehicles. Once you have narrowed down your choices to one or two types of vehicles, call your local credit union or bank and find out what it would cost you for a loan. Then contact your insurance company and find out what full coverage would cost.

At the end of three months you should reevaluate your decision to purchase another vehicle. Were you able to comfortably able to put aside the payment amount each month? If you had to skimp on other bills, or shorted your vehicle fund then you cannot afford that new car.

Would you spend that same amount each month on repairs for the car in your garage? Probably not. Even if you were able to afford the payments, maybe there are other things you would rather do with the cash, such as take that vacation or invest in your child's college fund, while nursing your old car through a few thousand more miles.

If you can easily put aside that money each month perhaps it would be best to just save for another year and pay cash for a newer vehicle. A few thousand dollars would purchase a very serviceable car and save you on the interest rate of a loan. You could also avoid the cost of comprehensive coverage required by the lien holder on a car that is not paid in full. If you can save for a couple of years you will have enough to buy a new or nearly new vehicle without having to finance it. 

Sometimes the decision to purchase a new car is more of an emotional issue rather than one of need. If, after doing the math you decide you just have to have than new car, at least you will be prepared with a more realistic knowledge of how much it will cost you and what your options are.