Retire Young and Wealthy

Choosing a car can be one of the most expensive outlays that a modern family can face. When all the individual expenses are accumulated, such as the initial cost of the vehicle itself, insurance and gas, they can soon begin to mount up and can make a significant dent in your family’s finances.

One way you can try to keep costs down is being selective about the type of car you buy. There are a few ways you can make sure you are saving money and equally, if you are not careful, some mistakes you might make that will cost you a lot of money. Below are certain factors and car choices you should AVOID in order to save money.

Buying a Car With a Low Resale Value

Many people do not often consider the residual value of a car when they are looking to buy. This amount is the percentage of the car’s original cost that you will be able to sell it for after a certain period, usually about three years.

For example, a 2011 Toyota Avalon has a residual value of 49 per cent with an initial cost of $33,205, meaning you would be able to sell it after three years for $16,475. In comparison, a Nissan Titan’s residual value over the same time period is only 32 per cent, meaning that a car that cost $27,770 would only be worth $9,050 when you are trying to sell it. Choosing a car with a higher residual value will help your family save money in the future.

Choosing an Uneconomical Car

Different cars use gas at different rates, and buying a gas guzzler is guaranteed to cost you a lot of money. A Honda CR-Z is one of the most economical cars on the market, with 35 miles per gallon.

At the other end of the spectrum, a sports car like the Bugatti Veyron only gets 8 miles per gallon. With petrol prices constantly on the rise, you should steer clear of cars like this if you want to keep costs down.

Purchasing a Car That’s Expensive to Repair

Over time, cars will inevitably break down due to wear and tear, no matter how good the parts that are used to make them are.

However, you can save yourself a lot of money from the outset by buying a car that is cheaper to repair. A Suzuki SX4 has average maintenance and repair bills of just over $3,000, while the total costs of the much sportier Dodge Viper are around $10,000.

Buying a Car That’s Expensive to Insure

Insurance companies are much more likely to charge higher premiums for a newer, more expensive car than for an older vehicle. The more powerful a car is, the higher your insurance premium will be. Based on collision losses, a Mitsubishi Lancer Evolution is the most expensive car to insure, while a Volvo XC90 is the cheapest.

By making a few wise decisions when you buy your car, you can help your family save money on its upkeep. Do you have any ideas about cars to avoid to save your family some cash?

Jessy is a frugal writer for Dobovo, the free resource for budget travelers. If you are planning car trip around Europe, check the site out for affordable Kiev apartments.