Saving Money While Protecting Your Investment

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While a lot of people love their cars and look at them as more than just machines with a purely utilitarian purpose, the fact remains that your car is an investment. Just as if you had stocks in a company, you should be conscious of everything that you can do to protect that investment. There are some things that are simply unavoidable, such as the fact that as soon as you drive your new car of the lot, it will lose 11% of its value. After just one year, it will have lost 25% of its value. It only gets worse, as after three years, that figure rises to 46%, and then 63% after five years. Unless you have lots of money that you are happy to spend on a new car every few years, when deciding on which model to get you should think about whether it will still be useful in a decade. If you are a young professional trying to put your money in the best car for the future, you may be tempted to go with something stylish and fast. However, if you start a family and you only have two seats, you will quickly find that you need to spend a lot more money on another car which is family friendly. You may also have to sell your first one to do this, which is not cost effective by any metric.

You may also be wondering about whether getting a second-hand car is better than a new one. Older cars are cheaper, but they have a tendency to break down more often so you may end up spending more than the difference on just maintaining it. A new car is better as well in so far as newer cars are safer, more environmentally friendly, and cheaper to insure. Obviously, there are no true constants and the decision depends on the two specific models you are comparing.

However, one thing of which you can be certain is that you will have to pay a lot for car insurance, the cost of which increased at the fastest rate in thirteen years in 2016. However, it is a legal necessity, and if you are looking for comprehensive car insurance, you should shop around. Lots of companies will offer you better deals if you tell them that you will take out insurance with them rather than one of their competitors. One of the things that you can do once you’ve got your insurance is not make it more expensive. Not having an accident is an obvious one, but not modifying your car will also ensure that you do not see your premiums rise. Research has found that you if just make superficial, aesthetic changes to your car, like changing the bodywork, your premiums can go up by as much as two-thirds. If you change the transmission and gears, you can expect a 63% rise while changes to the paintwork will see you paying a massive 36% more.

Insurance also covers theft, so you should also check out lots of the cool tech that is being developed to help you keep your car from being stolen. It could save you a lot of time, stress, and money.

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