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 Car
expense consumes a large part of Baby Boomers income. First,
there's the cost of purchasing an automobile, then
licensing, insurance, parking and regular maintenance, not
to mention the skyrocketing cost of gasoline. Add it all up
and it is a big chunk of money. One rule of thumb is
that your total car expense should not exceed 20 percent of
your household (after tax) income.
There are many ways for baby Boomers to reduce their car
expenses, and most of them easy to implement. Here are
selected articles offering useful advice on this subject:
If you use your car primarily for local travel (getting
about town, shopping, etc.), obviously it pays to car pool,
take the bus or ride your bicycle whenever possible.
Also, if your car is paid off, then perform regular
maintenance and drive it into the ground UNLESS your car
requires premium gas, in which case you should evaluate the
merits of trading for a car that runs on cheaper regular
gasoline.
Buying a new car will dent your budget. Used cars cost
considerably less. Since new cars dramatically
depreciate in value during the first two years, you can get
a "broken in" automobile which still under warranty at as
much as a 50 percent savings! And look for smaller,
more fuel-efficient cars. Here are some reputable
Websites that can help you determine how much to pay for a
new or used car, and assist you in finding a good, reliable
used car:
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Best and Worse Used Cars - Reliable models to look
for--and troublesome ones to avoid.
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Consumer Alerts: Reliable Used Cars - Report by
independent market research firm J.D. Power &
Associates.
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Edmunds
provides True Market Value pricing, unbiased car
reviews, ratings, and expert advice to help you get a
fair deal.
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Kelly Blue
Book for new and used car values.
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CarMax
- Excellent online source for pricing, selling and
buying used cars.
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CarandDriver.com - Gives specifications, pricing and
detailed reviews of new vehicles.
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RepairPal.com - Enter information about your car,
location and what repair service you need, and the site
will give you an estimate of how much the service
will cost.
You can often save a bundle by combining your home and car
insurance with a single insurance agency. Take the
highest deductible you can afford. Here's an
example. Learn more about saving money with
cheap auto insurance. AARP also offers
special auto insurance rates for 50+ drivers (including
Baby Boomers) in conjunction with The Hartford.
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