Cars that make you proud to drive aren’t cheap. It costs money to assemble these technological marvels. Maintenance and upkeep is another big cost. Nobody buys impressive cars in order to save money. But just because luxury isn’t cheap doesn’t mean that you should pay too much! There are plenty of corners in the luxury car industry which try to ensure that people pay more money than they have to. Beginners in the luxury car game might fall for these pitfalls, but with experience you’ll find savings opportunities around every corner.
The most important thing to do is ensure that regular payments are not more than you can afford. Some people may be able to pay cash for a car, then easily afford to maintenance and comprehensive auto insurance thereafter. But these people are in the minority. Most of us buy expensive cars a little at a time, through monthly payments and/or by fixing them up little by little. In both of these cases, it’s vital not to bite off more than can be easily chewed. Most financial people would recommend that a monthly car payment should not exceed 10% of one’s total income. Some people far exceed this benchmark and make things very hard for themselves. On the other side of the coin, car insurance should not cost more than it should – introductory payments should be taken advantage of and historic vehicle rates should be investigated when applicable.
This leaves us with repairs, rebuilding costs, and day-to-day maintenance. If you are one of the millions of people fascinated by classic cars, you are likely excited at the prospect of buying a piece of history. Like many, you might be looking to buy used Ferraris or other luxury cars that are fixer-uppers; People buy damaged assets in all sides of the financial spectrum. Lots of people do this with a first home or business space, hoping to save lots of money on the cost of such a structure by performing most of the necessary renovations.
While this is a great savings strategy, it’s not for everyone. Simply put, not everybody has the knack for complex mechanical repairs. For people who set off on the journey of rebuilding a classic vehicle, there is a high likelihood of failure and/or giving up. This leaves the buyer in a bad financial situation. Most will find themselves underwater on the car, unable to sell the car for more than they owe and have spent on it. Others lose endless amounts of time and money to the vehicle, unwilling to sell it but unable to complete it in a reasonable amount of time.
It’s important to carefully consider these factors before buying an impressive car. It may be awesome to drive the thing around and experience the thrill of purchase, but being in choppy financial waters afterward might sink your boat. Even if you can keep your head above water, you don’t want to pay more money than you have to. Saving is easy if you know how to do it, and the extra money will give you lots more options for the future, automotive and otherwise.