When you are looking at purchasing a new car, there are some hidden costs that you are going to have to figure into your monthly budget. These words of wisdom come from the author who experienced just this kind of thing.
In the winter of 2012, he drove down to a Nissan dealership in the hopes of buying a new Altima. The Altima is a great car and one that would save him money over the long run due to its reliability. He isn’t a big car guy, but it allowed for him to be confident in his purchase and to have a car that he could rely on for an extended period of time. With that in mind, when he first went down to buy the car, he had a price in mind. He was willing to pay only a fraction of what they were asking. As a result, he was able to negotiate them down from an asking price of $27,000 to a price that was closer to $21,000. He was also able to get them to buy his POS Subaru wagon from him for $2,500. This was a legendary win in the author’s book, but even those cost savings did not prepare him for the other costs that were about to be piled on.
On of those other costs came in the form of auto insurance. Even though he went with a reputable and cheaper insurance company called, Archibald Insurance, he still ended up paying around $115 a month for the car insurance and that was on top of the $300 car loan he was paying each month. So when you look at before and after with the car, he went from paying $35 a month in insurance to $415 in insurance and car payments. That was not an ideal situation. To compound that misery, he also had to pay taxes on the registration of the car and that was not something that he had originally thought about. In fact, he thought that the taxes for the registration were included in the purchase price of the car. He was wrong.
So one of the things that he looked to do was to bundle all of his insurance policies together. This allowed for him to save about 10% each month. You may not think that is a lot of money, but it is a situation where it truly does add up over time.
The next time he am thinking about trying to come up with a new way to save money, he might consider trying to consolidate some of his costs into a single entity. This would allow for him to save money year after year and not have to sacrifice the level of service that he expects from that kind of service.
If you are looking to save a bit of cash at the end of the month, consider you opportunities to bundle your car insurance with your home insurance. It should work out to benefit you in the end.