Car ownership to most people is a necessity; but owning a car has a sizeable impact on one’s personal finances, especially if the vehicle owned is a used car Still, regardless of whether a car is new or pre-owned, owning a car can be expensive as the related expenses go beyond making monthly loan payments. Our financial advice is that before taking out a car loan as a means of acquiring a vehicle, it’s important that you’ll be able to set aside budgets for impending costs and for an emergency fund.
Even if you own a company-subsidized car, it still does not take away the other inherent expenses related to car-ownership, such as fuel and lubricants, license and registrations, auto insurance, and costs of routine maintenance and repairs, whether minor or major. While some other costs are not as frequent, such as battery and tire replacements, it’s also a must that you have money set aside when the need arises.
Nowadays, if having a car is really important for you, having a financial plan for car ownership will prove helpful, because certain factors can affect your car’s good running condition. Examples of such factors include poor road conditions, frequency of car use, particularly those involving long-distance travels, flooding incidents, and in some cases, changes in federal and/or state laws.
Consider Minimizing the Wear and Tear Effects Caused by Frequent Car Usage
An oft mentioned suggestion for minimizing the chances of having to spend on costly repairs is to use a company vehicle for official business purposes, especially if the nature of your work requires you to go out on official business trips. When making plans for long distance travels for leisure or personal purposes, do some calculations on whether it’s cheaper to rent a car as an alternative to using your own vehicle. Although the cost-saving result may be minimal, consider the wear and tear impact that long distance travels can have on your car with every mile traveled.
Minimizing the Costs of Driving a Non-Owned Vehicle
If in case you plan to use a company-owned car or to lease a car, bear in mind that the risks of car-driving are still present. Driving is a risky activity as getting involved in an accident is something unforeseeable and can result in serious consequences not only to the car but to your person as well.
While you make driving decisions based on your own attitude toward maintaining safety, there’s always a possibility of encountering drivers who do not share the same attitude while on the road.
That being the case, one thing you should not overlook when driving a rental or company car, is to have non-owner insurance as cover for your personal safety. Bear in mind that generally, auto insurance policies cover only the owner of the vehicle. So if you are considering using a company car or to rent a car, factor in this cost when calculating the potential savings you’ll make if you want to avoid the wear and tear impact of long-distance travels on your car.
In many states, drivers typically are required to include the purchase of a non-owner insurance from the rental or leasing company. However, they are often highly priced when forming part of the rental or lease package. In North Carolina, motorists who drive non-owned vehicles, purchase Non Owner insurance for North Carolina drivers, directly from an insurance company rather than buy one every time they rent a car.
Since this could form part of your financial plans for car ownership, you can find out how much a non-owner insurance policy costs, by using a free-to-use insurance quote tool that online insurance companies like Nonowner Insurance NC furnish in their websites.
Having a financial plan for a car ownership, will raise your awareness about the need to set aside money, not only for routine driving and maintenance expenses; but also for unexpected costs that could confront you in relation to the inherent risks of driving a vehicle