Purchasing a car, while not a great long-term investment, is certainly an important short term investment. It needs to be done with patience, due diligence and future maintenance and usage costs in mind. If you’ve never purchased a car before it can be a little daunting too so, nice folks that we are, we put together a blog with some excellent car buying tips for first-time car buyers. Enjoy.

One of the first things you need to consider if you’re buying a car for the first time is whether you’re going to finance it or pay for it in cash. Both have their positive and negative sides. For example, a new car loses about 25% of its retail value as soon as you drive it off the lot, but being approved for a car loan (and paying the loan off on time, of course) can build your credit history.

That being said, if you have the cash to pay the car completely or pay off a large chunk of it your monthly car loan expense will be much smaller and easier to swallow.

Remember that you don’t have to get financing from a dealership but can apply for it at your local bank. Even if you are buying a used car you can sometimes qualify for a loan at your bank and many times the interest rates that they offer will be better than any dealer’s rates.

Would you buy clothing or electronics without taking a look at them first and making sure that they fit right and worked correctly? Probably not, so why would you consider buying a car without having it inspected first? You shouldn’t and, since a car can appear perfectly normal on the outside but have severe mechanical problems hidden on the inside, getting any used car inspected before you purchase it is absolutely vital.

While we realize that younger people prefer sporty cars with stronger engines and rear wheel drive the fact is that these cars are much more difficult to drive in hazardous weather conditions like rain and snow. It is for that reason that you should seriously consider purchasing a front wheel drive automobile for your first car because you’re probably still learning how to drive and it will be safer.

As far as warranties are concerned, if you’re purchasing a used car that has less than 60,000 miles the original manufacturer’s warranty will still be in effect. If the car you are considering has more than 60,000 miles you may want to purchase an extended warranty but keep in mind that that’s going to cost quite a bit of extra money.

One item that many new car or first-time car buyers forget is what affect their car purchase will have on their automobile insurance costs. Generally speaking a new car will cost more to ensure, especially since you have to have full coverage on it. Your best bet would be to check with your insurance company before purchasing any car to find out what your approximate cost per month will be to insure it.

Finally, with gas prices going through the roof you would do well to know exactly what type of mileage your car is going to get, whether new or used. This can have a huge effect on your monthly bills, especially if the car you purchase gets lousy mileage, so make sure you do your homework.

No matter what you buy best of luck in your search and with your new automobile. Make sure to drive back here to our website on a regular basis for more excellent tips on all sorts of financial topics. See you then.

Car insurance is a necessity that people certainly love to hate. It definitely eats up a good chunk of everyone’s pocket change and the premiums, depending on which state you live in, can be quite high. With that in mind we went looking for tips on how to save money on car insurance for you, our dear readers.  What we found were quite a few that will give you the opportunity to save in various ways. Keep in mind that car insurance laws, rates and rules vary from state to state and make sure that you check with your state on anything that you plan to do. Aside from that, sit back and take a look as we present  the best tips for saving on car insurance. Enjoy.

1. One of the quickest and easiest ways to save on car insurance is to get a higher deductible. This is especially true if your car is less than 10 years old.
2. If your car is newer, well-maintained and a brand that isn’t prone to breaking down you can usually drop towing from your insurance policy without too much risk. Of course maintaining your car is vital  for this to work so make sure that you do that. Also do your best to make sure that you never lock your keys in your car or run out of gas.
3. Many automobile insurance policies have a  car-rental rider that will pay if you need to rent a car. Unless you’re a frequent traveler or you spend hours on the road every day you can probably drop this also.
4. If you’re in the market to purchase a new car make sure that you do the research to find out if insurance rates for your particular model are within reason. There is no real formula for determining what it will cost to insure a particular car so, before you make a final purchase, inquire with your insurance company what the costs will be. Many times the automobile that you thought would cost less will cost more and vice versa.
5. Unless you have money to burn don’t waste any of it on aftermarket extras for your vehicle. While wheels, spoilers, an awesome stereo or a new exhaust may give you a small amount of pleasure, the fact is that if your automobile is totaled or stolen you’ll get back much less from your insurance company than you actually paid for the extras. In our opinion it’s just not worth it.
6. If you are insuring more than one vehicle or a combination of different types of vehicles such as cars, boats and motorcycles, it would be best for you to ensure them all at the same place.  In most cases doing this will allow you to take advantage of volume discounting.
7. If possible don’t pay your insurance premiums on a monthly basis. The average insurance company will charge anywhere from 2 to 4% extra when you pay monthly rather than paying every six months. If you have no choice but to pay monthly you should set up an auto-pay service with your insurance company as they will usually charge less when you do this.
8.  A factor that is becoming more important in the decisions that you will make determining your automobile insurance is your credit rating. As such, it would behoove you to keep your credit rating high. (Duh.) That being said, it is illegal for an automobile insurance company to change the rates on you mid-policy so don’t worry if you have a sudden drop in credit for some reason. Also keep in mind that you are allowed to request that your insurance company check your score once a year. If your policy was written when your credit wasn’t so wonderful  and it has improved since then this would be a great idea. (Just remember that it works the other way too.)

While we realize that paying for automobile insurance is a fact of life that doesn’t mean that we have to overpay for it. Automobile insurance companies, like any business, cater to the needs of their customers. If you have proven yourself to be a good customer, have good credit and have few or no accidents you should be able to negotiate automobile insurance terms that are more to your benefit.

We hope you enjoyed this blog and that the advice and tips that we gave were helpful. Make sure to come back and join us soon for more excellent money-saving information and tips that you can use in your daily financial life.

If you’re in the market for a new car and you want something that gets great gas mileage but you’re not really keen on getting a hybrid vehicle there are still a lot of cars on the road that get great mileage but aren’t hybrids. Some offer 40+ miles per gallon stats on the highway and close to that city, which isn’t bad at all if you think about it. They may not match hybrids in city driving but they won’t suck down the gas like many other models.  Here are four of the best.

The Volkswagen Passat TDI is at the top of the heap when it comes to traditional cars that still get great mpg. It comes with a 2.0 liter turbocharges engine, just as the Jetta, Golf and Audi A3 do and uses less diesel that most of its counterparts.  If you do a lot of highway miles the strong low down torque, excellent fuel economy and super quiet engine will make you very happy.  It’s also not unusual for a diesel to get better mileage than the EPA estimate so cross your fingers.

The Chevrolet Cruze Eco is the highest rated of the non-diesel cars and gets 42 mpg.  Many owners report that they’re averaging 41 mpg in total (highway and city) while the actual EPA number says only 33 mpg. The fact is, with its downsized engine and aerodynamic body the Cruze proves that the Volt isn’t the only car in Chevy’s fleet that is highly fuel efficient.

The Honda Civic HF  barely missed beating the Chevy Cruze by only 1 mpg and matches the Cruze as far as combined ratings are concerned. Just like the Cruze the Civic is beating  the EPA numbers.  The HF is a little bit less refined than the Civic Hybrid but has had tweaks to its 1.8 liter engine and some aerodynamic alterations as well that let it slip cleanly through the air.  It also has low rolling resistance tires and is a great alterative to Honda’s Civic Hybrid.

The new kid on the block Dodge Dart Aero just inched its way into the 40 mpg club on the highway with a 1.4 liter turbocharged engine.  This model has the engine that is used in Chrysler partner Fiat’s Alpha Romeo and uses Fiat’s MultiAir Technology as well to get the best air to fuel mixture and the best economy and performance.

As far as miles per gallon is concerned you can’t do much better than these 4 excellent choices.  They may not be hybrids but, for the money, they are possibly a better deal in the long run as they will cost much less than their hybrid counterparts (if they have them) and will use the least amount of gas to get the job done.

One of the best ways to save fuel is to plan car trips, even the little ones that you make every day.  Planning trips means that you will use the car less, avoid stops and delays that waste fuel and get the best mileage out of every single tank of gas. Read below to see what you can do to better plan your trips and start saving gas today.

First and foremost you’ve got to plan ahead, even for the small trips that you normally make every day to school, the grocery store and anywhere else that you need to go. For longer trips it’s even more vital that you plan ahead.  Doing this will not only allow you to take the shortest route but also to take bigger highways where you’ll encounter less traffic and less stops.

When taking shorter trips make it a point to listen to traffic reports and pick routes that help you to avoid traffic and construction areas.  Sometimes they might be a bit longer but you’ll still save fuel as there will be less stop-and-go traffic and less time wasting gas while your car idles. It’s also a great idea to give yourself plenty of time so that you aren’t forced to drive faster and accelerate faster from stops.

Combining trips and tasks is another excellent way to reduce fuel consumption and also wear on your vehicle. By combining smaller trips you will save gas by driving less miles and also your engine will be warmed up to an optimal driving temperature that uses less gas.

Driving a car that matches your needs is another way to save gas and fuel.  Let’s face it, if you’re a parent of multiple kids you’re going to need a big SUV or van to get them all wherever they need to go. On the other hand if you’re a single person you might be better off with a mid-size sedan than an SUV or a big pick-up truck. The simple fact is, the bigger the car the more gas it uses and the more money you spend. Use the smallest, most economical car that you can and you’re guaranteed to save money on gas.

Finally, tracking your car’s fuel consumption will enable you to see what you’re using and try and decrease it.  By using the tips above and driving less you can in many cases lower your fuel needs by as much as 10 to 20%, a difference that can mean hundreds of dollars in the long run.

 

Higher education is the key to financial freedom.  You may have hope of becoming the next Bill Gates, or perhaps winning millions of dollars in the lottery, but with those kind of odds that is akin to gambling.  Work hard and it will pay off, it really is as simple as that.  Far too many people forgo continuing education because of the cost, and because of the money they can make right away.  We here about the importance of investing, and there is no investment better than the one you make in yourself. 

The mistake many people make when attending college is choosing only expensive schools.  There are many ways to lessen the cost burden.  If you live near a higher learning institution you may want to try commuting to the school rather than living on campus.  This was a method I employed, and it literally cut the cost of college in half for me.  You don’t necessarily need to attend the #1 rated school halfway across the country when a perfectly acceptable school is right down the street.  Often times you will receive a discount based on your geographical proximity to the school.  Next, apply for any and all scholarships in which you meet the requirement.  It may be based on religion, race, grades, or even your first name, regardless just throw your hat in the ring and you may be chosen.  Multiple scholarships of small denominations can add up to big dollars in savings.  Financial aid and work study programs can fill in the gaps.  I was happy to do all the above and managed to come out of graduation nearly debt free.  The little bit of debt I did carry was at a low fixed interest rate.

Another looming mistake is that college students tend to pay far too much for a degree that will never give them a positive return.  I’m all for attending school simply because you love learning, but you don’t need to overpay for it.  A lower level college may be perfectly suitable for you.  If you insist on going to the most expensive school then you may want to consider a field that will provide a suitable return on investment.  Consider Economics degrees,  the school work is difficult, but obtaining one of these degrees from the best schools can land you a high paying position at virtually any company in the world.

I’m often emailed and asked about what sort of investments are “hot” right now, and what sort of investments are aggressive but relatively safe to house funds.  My answer is almost always the same, real estate.  If you invest in real estate early on in life you can accomplish a couple different things.  First, you build equity and have acquired an asset that you can carry with you throughout life and into retirement.  Second, and perhaps more importantly, you now have an investment vehicle that generates passive income for you.  This passive income comes in the form of rent payments from your tenants.  I remember purchasing my first home, and then a few years later my employer transferred me to another location.  Instead of selling my home I simply held on to it and rented it out while I was away.  This is essentially what led me into real estate investment.

While I am an advocate of investing in real estate, especially in the current economy, I think any investor needs to be very discerning as to where they invest.  Property investments in Canberra (Australian territory), New York, London, etc., all tend to be highly sought after areas that should see appreciation for many years to come.  These are areas that weathered the economic downtown and thrived while other areas became more depressed.  Having a balanced portfolio is important, and real estate should be a significant portion of that balanced portfolio.  Just make sure you are smartly investing in the right countries, cities, and geographical locations.

Now most importantly, don’t over extend yourself financially into order to invest.  If you can’t afford a sufficient down payment on an investment property then you need to wait and save money until you do.  Having an insufficient down payment can lead to higher interest rates, which in turn will cost you more money and eat into savings and investments.  In fact, if possible see if you can start small and pay for your first investment property in full with cash.  This gives you full security knowing you own the property outright, and you save money by not having any borrowing costs at all.

Buying a new car may not actually be the best way to spend your money on a car (I buy used) but the fact is that many people still love the look, smell and ‘feeling’ of a new car and, if that’s you, you’re in luck.  We’re going to look at 2 great ways that you can save money the next time you buy a new car.  Keep reading and the next time you buy new you’ll be in the driver’s seat, not the car salesman.

One of the first tasks that you have is to check the internet and compare prices online.  It helps of course to know exactly the car you want before you start.  You can always go to a dealer and test drive a car to find out if you like it.  (It helps if you don’t mind telling a little white lie occasionally.) Whatever the case know your prices and start doing some searches, noting the sites and the prices.Once you have your homemade price guide you’re ready to start.

Call the dealers and start going over prices with them.  Keep in mind that these guys and gals usually sell on volume which means that, to them, the price of the car isn’t a factor in their paycheck, the amount of cars that they sell is.  They will give you a rock bottom price because of this, and most experts agree that if you buy a new car from a dealer over the internet you will save at least $1000.00 to $2000.00 over a brick and mortar dealership.

Another great reason to use the internet to buy your next new car is that, when you buy a car online, you avoid the dealer’s financing and insurance department and all of their extra fees. Even better is that you can negotiate your price on your time when you buy online, from the comfort of your own home.

Want to go even further? Call the dealers and tell them all that they are in competition for your money and whoever gives the lowest price gets the deal.  Sneaky? Maybe a little but it’s certainly not illegal and will get you the rock bottom new car price that you want.

Once you have found the cheapest way to get your new car, make sure you save enough money as well!  Put away a set amount of money into an account specifically for your new car.  This will do wonders for reaching your goal in a quick and efficient manner.  If you’re a little short on funds when the time comes, then you can always make up the difference and apply for an online loan.

That’s some great info right there.  Use it when you buy your next new car and drive away a winner.