Suburban America requires a car. You can’t get anywhere without one, yet this is where 65% of American families choose to make their homes. Unfortunately, many suburbanites fall into a cycle of jealousy and one-upmanship about the car(s) they drive.
This cycle puts unneeded pressure on the budgets of ordinary Americans. It is possible to remove oneself from the cycle of new car debt (especially if you have bad credit – which can be repair via a credit repair company https://creditguide.io/credit-repair-companies/sky-blue-credit-review/) by taking some of these 6 simple steps.
Step 1- Have a Make/Model Reality Check
It is wasteful to own the most car you possibly can. A $50,000 car arrives at the destination as quickly as a $10,000 one. But cars have always been a status symbol. The available array of car makes, models, and features allows people to declare their income and personality in the car they drive.
Take the proliferation of SUVs: in the 199os, suburban parents shunning the image associated with a traditional minivan and chose to drive gas-guzzling behemoths that cost twice as much.
There are two components to a car reality check: the age of the car and the price of the vehicle. It is a waste of money to have a newer-model car. The price of the vehicle is a little more flexible. Consumers should select a vehicle that meets their needs (transporting children, work-related items), but offers good value.
Flash is not worth the price you pay, and neither are premium brands. Consider that Jaguars have a reputation as being one of the worst mechanical brands of car.
Step 2- Downsize Your Garage
Consider the possibility of owning fewer cars. Does a two person household really need two cars? The cost of access to a car is higher than most people think: maintaining the average car will cost $7000 a year to own and operate, according to the American Automobile Association. Investigate car-sharing services like Flexcar and Zipcar. these services offer vehicles to occasional drivers at an hourly rate.
Families can still save by using other modes of transportation, even if excess cars aren’t sold. According to the American Public Transportation Association, the average worker can save $100 a month in gas and wear by riding public transit. Walking or riding a bike promotes a healthy lifestyle. If these alternative modes aren’t an option, carpool with a family member or coworker.
Step 3- Pay Cash by Driving Out of Debt
One can easily drive their way out of car loan debt by keeping your car a few extra years The average car in the US lasts for 9.2 years With proper maintenance, a modem car can easily last for 150,000 miles or more.
As a general rule, a car should be driven for two years after it is paid in full. During this two-year period, the owner can put aside $300 a month instead of making a car payment. 1his will net $7,200 that can be applied to the purchase of the next automobile. Coupled with the trade-in value, the next car should be able to be purchased for cash.