Seven Tips For Buying And Driving A Car You Can Really Afford

Chances are you really can’t afford the car you’re driving. Most Americans spend too much on cars, reconciled that they must always have at least one and perhaps two (or more) cars payments. If your car is good to more than you have in your retirement savings, you really can’t afford it.

You can—and should—drive a car that doesn’t require that you borrow the money. Here are some tips to help you do just that:

1.  Drive the car you have already for a long time. If you still be making payments on your car, plan to keep driving it for several years after you pay it off so that you can save up for its replacement. When you replace the car, limit your purchase to your savings plus the value of your trade-in, even if that means you have to buy a used car.

2.  Take good care of the car, you have so you don’t have to buy a new one. Don’t defer maintenance; take care of problems while they are small.

3.  Don’t is to try to keep up with the Joneses. It is always tempting to buy a new car, much more so when the neighbors all upgrade. Don’t let your neighbors decide when you need another car; you decide when you have the money saved and try to make that purchase.

4.  Remember that virtually every car is discovered in the same place: the wrecking yard. Cars are not investments. They do not build equity—even if your husband says they do. They are productive but depreciating assets. Buy a car for the utility it provides and not the style it evokes.

5.  Just looks for a car that is affordable to own and operate. When you buy a car again someday (see number above) look for a car that is affordable. Intellichoice.com provides ownership cost estimates that can help you compare the cars you’re considering. Sometimes the cheapest car isn’t the cheapest. Sometimes the car with the lowest sticker price isn’t the car with the lowest total ownership cost. However, be sure to buy a cute cat you’ll be happy to drive for a long time!

6.  Educate yourself before do not leave a car. When you purchase a car, be sure to educate yourself thoroughly before going to see a dealer (consider seeing multiple dealers to get the best deal). You should have a good idea about the car you wish to purchase, the price of the options you want and especially the factory incentives available on new cars. A number of web sites, including MSN Autos (on-msn.com/gQxonM), offer this information, some for a small fee. Arm yourself so that you don’t over pay for that new car.

7. The best car is no car. If you can eliminate a card from your garage by using public transportation, car sharing, walking, bicycling or car pooling, you will find yourself saving so much money you’ll never want to have a car again.