If you are in the market for a different car, have you considered buying a used car? There are some very good financial benefits to buying a used vehicle. Of course, if you are the type who only wants new vehicles, then this information will be food for thought for you, while people who would consider buying a used car, will find this information exciting.
Let’s take look at the overall financial impact of purchasing a new versus a used car. For this example, the new vehicle will cost about $28,800 and the used vehicle will cost $15,200 over the next 5 years. We will also assume that after you finished paying for the used vehicle that you continue to put into the bank the same amount as the car payment. At the end of 5 years, here’s how much your net worth will have increased. These numbers do not include any interest on the savings.
You will notice that your overall net worth has actually increased even though you bought a vehicle that was worth initially less. This is the power of saving money. Our goal at MsFiscallyFit.com is to educate you on how you can be “Fiscally Fit” in all areas of your life.
Many people have a tendency to shy away from used vehicles. They are scared of buying “someone else’s problem”. When shopping for a used car, only consider reliable sources to buy from. You can purchase extended warranties on newer used vehicles from reputable dealerships in your area.
Check publications on used cars such as Consumer Reports for ratings on different used cars and find a reliable model. Also check Kelley Blue Book for retail and wholesale prices for used cars. You can also go online to find this information and do some comparison shopping without leaving your house. Here are some helpful web sites:
NOTE: These web sites are listed so you can start your research. MsFiscallyFit.com is not affiliated with these web sites and this is not an endorsement by MsFiscallyFit.com. The information at these web sites is not guaranteed to be accurate. Use of these web sites are at your own risk.
www.kbb.com – Kelley Blue Book
Pricing information for new and used vehicles.
www.edmunds.com – Edmunds.com
In this information rich site you can search out vehicle prices on new and used cars and find cars through their Market Place.
www.autobytel.com – Autobytel.com
Easily search our database of Certified Pre-Owner vehicles. All of our vehicles have a photo, and you’re protected by a 72-hour money-back guarantee, a 135 point inspection, and a 3 month/3,000 limited warranty.
www.carsdirect.com – CarsDirect.com
Find used car listings from newspapers across the country and pre-owned vehicles from your local dealers, too. CarsDirect.com is the fast, simple way to shop for your next car.
www.imotors.com – iMotors.com
Purchase a used car exactly how you want it. They will sell you the car you select and they guarantee it to be below Kelly Blue Book pricing.
(originally published 2/20/2000)
Some major companies offer life and disability insurance for an additional cost or sometimes for free. If you have a family, taking advantage of your company’s life insurance benefit may be a cost-effective way of beefing-up your life insurance.
If you are the primary breadwinner in the family or your income plays an important part in your family’s monthly living budget, it is important to have the appropriate amount of insurance to hedge against any catastrophes that would affect your ability to earn income. Depending on your situation, purchasing the coverage you need to protect your family may be too expensive. Compare the rates and coverage offered by your employer and your outside insurance company.
Do not assume your company’s insurance policy is cheaper. But if the company insurance program is less expensive, you may be able to save money by combining both your company’s and your outside insurance company’s insurance policies together to get the appropriate coverage you need.
Since your employer’s insurance is usually only supplemental coverage (extra coverage) you will need to find out the maximum amount you can obtain from your company and subtract that amount out of the total coverage you need. The remaining coverage should be obtained through your outside insurance company. Paying for a portion of your insurance needs with your company sponsored insurance program is a good way to save money through your employee benefits.