Cars are essential for newlyweds. They can help them access services easily, save money on transportation costs, and travel to various areas. Nevertheless, the cost of buying a car and other vehicular expenses is high, necessitating proper planning. The following are five ways newlyweds can budget for vehicle expenses.
1. Maintain Your Car’s Warranty
Keeping a car under warranty is an excellent strategy for a newlywed couple to budget for vehicle expenses. Newly purchased vehicles come with a warranty, with an average period of three years from many car brands and dealers. In addition, car owners can buy a warranty for their car if the existing one expires. An active car warranty can help cover expensive repairs and replacements involving a car’s engine or transmission system.
2. Acquire Auto Insurance and Add-Ons
Auto insurance is necessary for protecting a car against damages and protecting a driver’s financial liability in case of an accident. As such, auto insurance helps cover vehicular damages against issues the car is insured against. For example, newlyweds with comprehensive coverage will have their car damage expenses covered by their insurance provider. Auto accidents cost the U.S. economy about $250 billion, hence the need to save vehicle expenses attributed to accidents using insurance cover.
Moreover, investing in insurance add-ons is a great way a newly married couple can budget for auto vehicle expenses. One of the most significant add-ons is roadside assistance. This add-on allows clients to receive a myriad of roadside services in case of car breakdowns or damages. The most common services paid by roadside insurance include towing, fuel delivery, and tire exchange services.
3. Purchase a Used Car
While it is everyone’s dream to buy a new car with zero mileage, getting a used car can help a newly married couple budget for car expenses. A used car is less expensive and is associated with fewer payments than a new car. Buying a used car with cash implies that the couple won’t have to worry about paying monthly installments if they had acquired a new car on a loan agreement. Purchasing a new car is beneficial in case of a job loss or any other financial issues that may prevent a couple from paying a car loan. Buying a used car is also effective for budgeting car expenses because new cars have higher insurance costs than older ones.
4. Drive Less
Car owners spend more on fuel than other vehicle expenses. That said, newlyweds should reduce fuel use by driving less. Newlyweds can reduce fuel use by shopping in the local market and using public transport when going to town. Carpooling to work is another viable alternative for a newly married couple to budget for vehicle expenses. Sharing a car with one person saves up to $20 on fuel a month, translating to $240 a year.
Besides budgeting for fuel prices, driving less reduces maintenance costs. The more a car operates, the more it experiences tear and wear issues that need maintenance. A couple driving their car less will have a higher chance of spending less money on maintenance.
5. Utilize Cost-Efficient Vehicle Fixing Techniques
According to experts, paintless dent repair (PDR) techniques can repair 80-90% of dents. So, if your car has dents from hail, don’t go for the older, more costly method of fixing them. Instead, hire a mechanic with modern skills that’ll save you money! This goes for other forms of fixing various aspects of your vehicle as well.
Budgeting for vehicle expenses isn’t as difficult as people think. Proper planning and using the right information go a long way in making a successful budget. Using these tips can help newlyweds effectively budget for their car expenses.
