canstockphoto3398083If you have children, a job to go to and way too many chores to do, chances are you will need reliable transportation to get around. A car is the most convenient form of transportation, especially if you have to travel a long distance to get back and forth from your home.

Today, most people have a least one car to get around. When you are looking for ways to lower your household bills, you should consider staying in your budget if you’re going to buy a new car. Many people make the mistake of buying a luxury car to keep up with the joneses. They often wonder how they end up living paycheck to paycheck.

 

Another mistake that many people make is they are so in a rush to get a new car. As a result, they end up with a lemon or being cheated out of their money. If you are not careful you could even be left with a car payment that’s almost as high as your mortgage. There are ways to prevent this. Here are 5 ways you can avoid Car Payments from draining your wallet.

 

1. Consider getting refinancing. Many people simply use the car dealership’s financing company for their car loan. Going this route is expensive for two reasons: the added fees and high interest rates. Even though they can stretch your Car Payments out for six or seven years, you will end up paying much more than the car is worth. You should keep in mind that cars depreciate as soon as you drive off of the lot.

 

2. Visit your credit union. Credit unions are one of the best places for you to refinance your vehicle. You will possibly get a lower interest rate and better terms. Even if you start with the finance company, there is no time like the present to stretch out those payments at a lower monthly rate than you previously had.

 

3. Trading in your car is another option. There isn’t a rule that says you have to keep the same car until it is paid off. The car dealer will inspect your car to see how much it is worth. If you keep your car in good shape by getting your car serviced by a good mechanic and keep it clean, you will have an advantage. The difference will be added to the total amount and you will end up with a less expensive, but reliable car. Car Dealerships are always running specials and you will be able to cash in with a trade-in.

 

4. If you decide that you are going to purchase a new car, here are a couple of things to remember. Try to choose a car that gets good gas mileage and find out what gas octane that it requires. Luxury cars use higher octane, which will cost you more to fill up your tank.

 

5. Finally, another way to save you money is to carpool with your friends and coworkers. This will save you money on gas and the wear and tear on your car. If there are a few people that you know that have a reliable vehicle, you all can take turns driving every week or so. The amount that you save on gas can offset your monthly Car Payments.

If you follow the above tips, this will potentially save you thousands of dollars on your Car Payments and avoid the headache of being ripped off by the car dealership. Whenever you decide to get yourself a new or used car, always do your homework and sit back and enjoy the ride.

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