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Random

Smart Car Care Tips

by Evan September 9, 2019

You’ll have to do more than just fuel it and drive it if you want your car to last. Further, if you make it a point to always give your car what it needs, the vehicle will happily return the favor. Neglect its care, your car will leave you stranded at some point.

Hopefully, this will happen somewhere convenient like in your driveway on a lovely spring morning. However, it could just as easily be late at night, in the dead of winter, 50 miles from the nearest town.

These smart car care tips will help you show your car the love it requires to prevent either circumstance — and save you money besides.

Check and Change the Oil

Oil is the life’s blood of your car’s engine. Bathing all of the moving parts in a warm slippery bath, oil reduces the amount of friction the engine must endure. As a result, mechanical components wear more quickly when the engine’s oil level is too low. This can lead to a catastrophic failure.

Similarly, old oil’s ability to provide lubrication is compromised. It can also leave sludge deposits in critical areas, which can lead to malfunctions. Your car’s owner’s manual will outline the manufacturer’s recommended intervals for oil changes.

Pay Close Attention to Your Tires

Four little patches of rubber, about the size of the palm of your hand, are all that communicate your steering and braking instructions to the street. Yes, there are a number of mechanical components in between, but your tires have to be in good shape to make a difference.

Tires with healthy tread grip the road better and disperse water more efficiently when driving in the rain. Your tires must also be inflated to the proper air pressure to perform optimally. Let them get low on air, or overinflate them, and they’ll wear prematurely too. Most cars have tire pressure monitoring sensors these days, but you must still inspect your tires for wear.

Change Fuel and Air Filters as Required

A dirty air filter will reduce the amount of oxygen entering your engine. This will impede its performance potential as well as make it consume more fuel. Air filters are usually pretty easy to change and inexpensive to purchase.

In other words, they’re a cheap way to keep your car running right.

A trained mechanic, unless you’re really skilled with tools and know your car well, should do your fuel filter changes though. Fuel can ignite and the filters can be tough to get to. However, a dirty fuel filter will eventually kill your engine.

Lower Your Car Payment

While not exactly a maintenance tip per se, this one can help you save money you might need to perform maintenance or effect an unexpected repair. Car loans are usually pretty reasonably priced and easily managed — if you shop carefully. However, there may have been interest rate reductions, or your credit score may have improved since you got the loan. If either of these is the case, a refinance will get you a lower payment.

Weekly Washes and Biannual Waxes

Depending upon the nature of the climate in which you live, washing your car on a weekly basis will keep it looking new longer. While that will have little effect on how it runs, you’ll feel better about your car every time you see it when you keep it clean.

Waxing your car twice a year will provide good protection for your paint. Do so just before the end of autumn and again at the beginning of summer. This will freshen its protection going into the most inclement seasons and give you a shiny car to drive during the warm weather months.

These smart car care tips will help you avoid the most common issues people encounter. You’ll find more detailed car care advice at CarCareCouncil.org.

September 9, 2019 1 comment
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Personal Situation

Leasing vs Buying My Next Car

by Evan March 27, 2019

One of the things I like about running a personal finance blog is that it provides me with the opportunity to write out my thoughts while working through a real life problem.  I have done this a few times over the years with quick examples being whether to purchase a rental property and whether to put solar on my home.  Right now, I am trying to figure out whether 1) should I lease or buy my next car, and 2) if I buy what kind of car should I buy.

240sx From the age of 17 to about 35 years old I had just two cars.  My first car was a 1993 240sx that I got in 1999 at the age of 17.  That car took a lot of beatings, but took me through college, through law school and then finally died in November of 2006.  After that, I bought a barely used 9,000 mile Mitsubishi Gallant (side note reading my old post on the topic, I can’t believe I was paying 13% interest that was then reduced to 9% before landing on about 6%!).   I drove that car from 2006 until August 2016. The car treated me well needing next to zero repairs, but it was getting up there in miles and I was feeling the lack of technological advances we all saw over those 10 years (rear camera, Bluetooth, etc).

It was at this point I leased my first car.  I know that is a taboo subject when it comes to personal finance bloggers since it is basically renting a car for 3 years.  The Wife always leased so I watched her getting a new car every 3 years and I wanted to partake in the process and fun.  I traded in that still running, paid off Mitsu and leased myself a Lexus IS 300 for $400/mo (and the car as a down payment).  Well that lease is up and now I sit wondering if I want to Lease vs Buy my next car.

Leasing versus Buying My Next Car

The two massive positives that I received were that I had almost no worries that something was going to go wrong that wouldn’t be covered in the first 36 months, and I got to drive a new car that I really enjoyed.   Notwithstanding those two pros, as I come to the end of the lease I am going to say that I am actually bothered that I will have paid $14,400 ($400*36) plus the value of my still running car, and as of August 1st, 2019 I will own nothing.  There is no corresponding asset on the balance sheet regardless of how much it may have depreciated.

If I stay on this hamster wheel, I will just be responsible for another ongoing bill that will beget another bill and that cycle is never ending.  On the other side, if I stay on that hamster wheel of leasing then I can keep myself out of the mercy of mechanics who seem just to make shit up to fix!

While I believe that some people (including myself) need a nice-ish car, I don’t think it has to be a new one every 3 years to get that affect. Similarly, I don’t think I am the type of person that needs a new car every 3 years as evidenced by the fact that I have only “done” that once.

As I write this post and get my thoughts out there in the world, I am going to buy my next car.

The money I spent would have nearly paid off a very nice $20,000 off lease car that will still may have value.

What Type of Car I am Going to Buy Next

As is my nature I have been researching this topic ad nauseam and forcing The Wife and friends to listen to my random and ever changing thoughts on the topic.  During my research I was shocked to find how much luxury autos depreciate once they are off lease, only to stabilize later in their life.  If you are so inclined there is a ridiculous amount of data on UsedFirst.

For a factor of reasons (I want Android Auto, I want a body style that was just changed, tech is important to me but the suspension is not, etc.) I think I have narrowed it down to a few cars that I will continue to look at:

  • Small Car – A4 (2017+ w/virtual console), Q50 (2017+ cheap to fix) and the ATS (love that hard look).  These cars are on the less expensive side, and truth be told I enjoy driving smaller cars, however, my kids have said something when they compare it The Wife’s SUV.  I don’t like the inside of the C-Class but love the way it looks from the outside, I have a feeling they are going to update the IS soon so I don’t want to buy it right now.
  • Mid Sized – This is really where I was shocked with my research.  You are talking about 50%+ depreciation just after 3 years!  I like the E-Class 2017+ but that may not depreciate enough before the time I need to get a car, but that model and onward was just redone.  I also like the CTS.  The A6 follows that depreciation line but it was redone in 2019.

So, as you can tell I haven’t exactly narrowed it down in terms of model but it is an important decision since I am hoping to keep whatever I PURCHASE for the next 6 to 8 years!

March 27, 2019 1 comment
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Auto dealership
Random

5 Tips To Help You Through The Car-Buying Process

by Evan June 22, 2018

If you’re interested in buying a car at Abbotsford dealership, you may be dreading the process. Buying a car can be exhausting, and it’s a big decision. Even just thinking about shopping for a car at an Abbotsford dealership may make you tired, or fill you with a sense of dread.

However, buying a car doesn’t have to be an ordeal. If you follow just a few helpful tips, you’ll be able to buy a car in just a few hours.

Auto dealership

  1. Begin With A Budget

The first thing you should do – before you even begin shopping at a dealership – is build a budget that can determine which cars you should look at.

As a rule, your automotive expenses should not exceed 15% of your take-home pay. This includes both your monthly car payment and your automotive insurance. For example, if you make $40,000 a year, you should be spending about $500/month maximum on your car payment and insurance.

If you’re working with a lower budget, you can save money by purchasing a pre-owned or certified car, and putting down a large down-payment. This will reduce your monthly payments quite a bit, and still get you a great car.

  1. Start With Online Research – Find A Car You Like!

All major car dealers have online car listings. Start browsing the dealerships near you to see if there are any cars you like, and if any fit your budget.

It’s a good idea to compare the dealership prices to Kelley Blue Book values while shopping for a car. This lets you see if you’re getting a good deal, or if a car may be overpriced.

Note that the sticker price does not include registration fees and taxes, which can easily add up to several thousand dollars. Take this into account when considering your budget, and choosing vehicles you may want to buy.

Once you find a few cars you like, and that appear to be a good value, it’s time to start shopping!

  1. Bring Important Credit Application Documents With You – Or Get Pre-Approved

If you’re going to be applying for credit at the dealership, you’ll want to have some documents with you, such as:

  • References (3 or more are often required)
  • Proof of income (pay stub or bank statements showing income per month)
  • Proof of address (a phone bill or utility bill works for this)
  • Identification (driver’s license, passport, social security number, etc)

If you have all of these with you when you shop, you’ll be able to get through the application process much more quickly.

Alternatively, you could seek loan pre-approval from your bank or a credit union. If you get pre-approved, you can buy a car without filling out another credit application, or the dealer may be willing to cut you a better deal on your APR and loan terms.

  1. Make Sure You’re Fed And Hydrated Before You Go To The Dealership

This may sound silly, but it’s a good idea. Buying a car can take hours – you have to look at each vehicle, examine it, test drive it, ask about loan terms, negotiate prices – there’s a lot to do. You may get tired during the process, and if you’re hungry or dehydrated, it may not be much fun.

Most dealerships offer water and some snacks, but you should make sure you drink plenty of water and eat a full meal before going to a dealership. This will help you keep your head clear, and aid you in avoiding fatigue during the process.

  1. Realize You Can Always Back Out

Even if you have test driven a car, filled out a credit application, and begun preliminary negotiations for your loan, you can back out of the deal. As long as you have not signed for the car, you are not committed.

If you decide that you could find a better deal elsewhere, or that you’re not interested in a car, you can walk away. Your salesperson may try to pressure you to stay – or even make you a better offer – but you are fully within your rights to leave.

Follow These Tips For A Better Car-Buying Experience

If you follow the tips outlined above, you’re sure to have a more pleasant time shopping for your next car. Do your research, build a budget, bring in all the documentation you need, and ensure that you’ve got a few cars picked out that may be viable candidates.

Do that, and you’re sure to get a great deal on a car.

June 22, 2018 0 comment
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Insurance

Top Discounts on Car Insurance

by Evan June 10, 2016

In today’s world anything you can find a discount on can be a real help to the wallet, right? That’s why we have put together this list of the top discounts you can get on your car insurance. Now, remember some of these might apply to you while others might not, this is a general list of discounts the other thing to keep in mind is each insurance company is different and while some may honor these discounts others may not, the best course of action is to call your car insurance provider and ask what discounts are available to you.

  1. Loyalty Pays Off – you see it all the time car insurance companies claiming to be able to save you hundreds when you switch to them, but how much do you really save and what is the catch? Those are the questions you should ask; when you are loyal to one company you can qualify for discounts. Companies appreciate loyalty and most will show you that through a discounted premium, or a lower deductible in some cases. Ask your company about a loyalty program.
  2. Tell The Truth – let your insurance company know things such as you just put winter tires on your vehicle, you have not had any speeding tickets or wrecks, tell them about your work, where you live, where you went to school and so on. The more honest and open you are the more discounts you could qualify for.
  3. Big Issues Only – Unless it’s the first time you are filing a claim, save the filing for the big issues. If you have a mild fender bender where you back into the pole or wall and not much damage occurred (especially no other vehicles were involved) then save the time and money because most times your insurance will have a deductible you pay when you file the claim. Depending on the issue your insurance might actually increase because of it if you file a claim.
  4. Driver’s Safety Course – did you know most insurance companies will give a discount to those who have taken and passes a driver’s education course? This is especially great for those families with new drivers; it provides excellent education to the new driver as well as a discount.
  5. Safety Features – these not only keep you and your loved ones safe while traveling in the vehicle but depending on which safety features there are you could be getting discounts on your car insurance. Keep the family safe and save money, it’s a win win situation!

As we stated not all discounts will apply to you or your company but call your insurance company and ask about their discounts that are available, you might be surprised at how much money you could be saving.

June 10, 2016 0 comment
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Personal Finance

Pros and Cons About Buying Car in Current Rate Environment

by Guest Post November 6, 2012

Post by Robert

Every evening news correspondent has been reporting on the low interest rates and its effect on the housing market.  Auto loan rates have been dropping significantly over the last several years, in line with the general fall of interest rates overall.  However, does that mean it’s time to buy a car?

The Pros of Buying a Car in the Current Financial Environment

There are a lot of positives to buying a car right now.  For one, many dealers are giving great car deals to entice buyers onto their lots.  If you’re going to need a new car in the next 6 months, it doesn’t hurt to start looking right now.  You never know, you could negotiate the dealer to a really good price, especially if they are desperate for end of the year sales.

Plus, if you get a reliable car, it should last you for 5 years or more.  This should get you through the uncertain economic times ahead, which could include rising interest rates.

The Cons of Buying a Car Right Now

There are two big disadvantages with buying a car that you need to consider: what are you going to do with your existing car, and how will you pay for it. First, you will need to sell your car, or trade it in.  You need to know what you can get for it, and if it makes sense for your financial situation.  Second, buying a new car, even if you get a loan or a lease, requires some down payment.  Are you going to be able to afford this and still have an emergency fund?

The Bottom Line

The bottom line is that if you need a car – for example, if yours is getting old and requiring a lot of maintenance – now is a great time to buy a car.  However, if your car is still in good running condition, you shouldn’t just go out and look because the deals are good.

November 6, 2012 1 comment
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