How to own a car without going broke

Collaborative Post

According to a recent study, it costs roughly $5,264.58 every year to own a car in the United States, though this varies depending on the vehicle and frequency of use. Either way, that’s a lot of money - especially when you consider the financial hardships that caused by the COVID-19 pandemic.

Unfortunately, in this day and age, many of us cannot afford not to drive - especially if you rely on your car to get to work.

But getting behind the wheel doesn’t mean that you have to sacrifice being financially responsible. With that in mind, here are some budget-friendly tips for getting on the road…

Budget for your driving lessons

If you’re to get a car, you need a driver’s license. The challenge is that lessons can be incredibly expensive, but there are ways that you can make them a little cheaper.

For example, if you buy multiple lessons in bulk, many instructors are happy to provide you with discounts. There are also plenty of free driving resources (including YouTube videos) that you can use to supplement your knowledge and pass your test quicker. 

Consider a used car/ starter car

Finding the right car for you can also make a difference in your expenses, while you may dream of owning the latest sportscar - buying a second-hand car is a great way to save money while getting your hands on reliable income. You should also look into the running costs of any vehicle you buy - as some require more attention and maintenance than others. 

Set aside some money for emergencies

Most people get into debt or keep recreating the cycle of debt because they don’t have money to cover emergencies.

Set aside money to cover the cost of breakdowns or to support you should you get into an accident.

For example, if you are involved in an accident that renders your car unsafe for the road, you can use these emergency funds to hire a talented team of car accident lawyers who can help you navigate the complicated legal process and get the compensation you deserve as a result. 

Understand your loan agreement

I understand that, not everyone can afford to buy a car cash and I also understand that for most people, a car is a necessity, which means most people will have to take out a car loan in order to own a car.

If you do have take a car loan, make sure you understand the terms of the loan and that you can pay the monthly installments. Make sure that your installment payments don’t leave you broke.

Understand the difference between good debt and bad debt and negotiate for a loan agreement that works in your favor.

Get car insurance

Speaking of emergencies - the best thing I ever did when I had a car was get get car insurance. Having car insurance has saved me many times in emergencies - smashed windscreen, flat tyres, broken windows (form a break in) - all that was covered by insurance.

Before purchasing car insurance, take some time to ensure you’re getting the best possible deal. Remember, this can take a little time because there are plenty of different providers out there - but it’s worth a little research if you get to save some serious money as a result.

Pro tip: You can also let one provider know you’ve been offered a better deal elsewhere, because they may be able to put forward a counter offer. In short, be ready to negotiate so that you can get on the road for less. 

What are your car ownership tips?
Share your feedback in the comments section below.