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Tag Archives: car payments

Save Money on Transportation Costs

save on transportation

Unless home is in a major metropolitan area with great public transport, you probably need a car. I have no problem with vehicle ownership. There are two of them sitting in my garage right now, but it’s amazing to think that Americans spend over $9,000 a year on transportation costs. The good news is that you don’t have to spend that much to get from point A to point B. There is a simple way to save money on transportation. The Bureau of Labor Statistics released a report recently outlining how Americans spend money. The typical consumer unit (defined as either families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share expenses) takes home an average of $53,485 per year, and we spend almost all of it. Cars Are Our Biggest Expense After Housing Obviously, the biggest expense category was housing. In addition to mortgage or rent, water and electricity bills, insurance, furniture, and property taxes are lumped in to this category. Americans spend $17,798 a year or $1,483 per month¬†on housing. That certainly ¬†doesn’t seem like most of us are spending lavishly to have ...

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What’s the Best Way to Save for a New Car?

best savings accounts

Although we just got a new to us car earlier this year, our other vehicle is ten years old with over 150,000 miles. Unfortunately, it won’t run forever. It’s time to start planning our next vehicle purchase. What’s the best way to save for a new car? Buying Used Saves Thousands Actually, it won’t be a brand new car. We learned the hard way that factory fresh cars are usually a waste of money. I know there are many people who believe in buying new and driving the car for many years, but we think it’s smarter to buy vehicles that are a few years old with low miles. We bought Jim’s Toyota Tacoma back in 2006 when it was a year old with about 10,000 miles. It saved about $4,000 and was practically new. The truck still runs fine, and we hope to have at least two or three, maybe more years until we have to get something else. Just in case it’s sooner rather than later, we need to make plans. Taking on a Car Payment Mathematically speaking, with a low interest loan, having a car payment isn’t a bad idea. If we invest the chunk of change ...

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