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Zac Bissonnette recently published a book on debt and savings for young adults. Although Zac is only 23 years old, this is already his second published book. In a recent story in the New York Times, Zac’s book, “How to Be Richer, Smarter, and Better-Looking Than Your Parents” discusses ways in which teenagers and young adults can live with a level of financial responsibility and understanding that will set them up for a successful life. In addition to buying this book for our kids, we can also help set our children up for financial success by taking charge of our own finances and setting a good example. One of the first steps to becoming financially savvy is understanding and being smart about the car buying process.
Should I keep repairing my car?
As cars get older, the cost to maintain them increases. Deciding whether to invest additional money in your car or get another one altogether can depend on several factors. If the cost to repair is relatively low, especially when compared to the cost of another car, it might be worth it to sink more money into your car, notes Edmunds.com. However, as your car gets older, and the repairs become more frequent and more expensive, it might make sense to cut your losses and find another vehicle.
Another consideration is your financial situation. If you simply cannot afford to take on a down payment and monthly payments, it might make more sense to put additional money into your current vehicle. Even if it costs more than a down payment, it will still ultimately cost less than the down payment plus years of monthly payments.
Should I get it private or Certified Pre-Owned?
Should you buy a car from a private seller or buy a certified pre-owned vehicle from a dealer? Before writing a check to some random guy you just met from Craiglist, consider these tips from Bankrate on buying a Certified Pre-Owned vehicle:
- Make sure that the vehicle is manufacturer certified. This provides additional protections that you won’t get from a car that isn’t manufacturer certified. Not every “certified” car on a used car lot is manufacturer certified, so make sure you ask and get in writing the car you’re buying is in fact a manufacturer CPO vehicle.
- The warranty you get with a CPO car is much better than you’d otherwise have from a private used car sale. In almost every instance, the CPO warranty will be significantly longer than the original warranty.
Carfax, another industry leader, offers some pointers on what you should ask before choosing used or CPO as well:
- Make sure to find out who is doing the actual certification. There is a big difference between being certified by the manufacturer or a random fly-by-night used car lot.
- Additional perks can include roadside assistance, free oil changes and maintenance, and other options. Many times you will not get any of these perks unless you ask upfront.
By knowing this information before searching for a car or stepping onto a used car lot, you can feel confident that you will be making the optimal decision for your personal finances while also getting the best bang for your buck.
How should I finance my car?
How you finance your car can be as important as the cost of the car itself. With sellers like Drive Time, you can register your vehicle online to monitor your car loan and other important information anytime. By regularly logging into your account, you can see exactly how much you owe, how much you’re paying in interest, and how much more you will need to pay off your car. When choosing a website to register with, be sure to find a reputable one that is BBB certified.
This is a guest post by Megan Goldmeyer. Megan teaches Zumba, takes care of 5 kids, and runs 7 different blogs–all by herself.