Work Life Tips

New cars are a pleasure, but they do cost more to own and operate. If you are looking for ways to lower your auto insurance costs, check out “Nine Ways to Lower Your Auto Insurance Costs,” a publication of the United State’s Department of Agriculture.

*You can download the PDF version free at the Federal Citizen Information Center’s Web site, or you can order a print copy for $1.00 from the site.

Your existing car is paid off, but it is becoming more costly to maintain. How do you know when the time is right to buy a new car? Living by the “no car payment” mantra can be good for your pocketbook, but there comes a point when repairs to your trusty Toyota begin costing more than a car loan or lease payment. These days, you can buy or lease a reliable new car for as little as $200 a month—sometimes less.

Contact your mechanic and ask for a summary of repair costs for the trailing 12-month period on your existing car. If it totals more than you would have paid for a new car loan or lease payment, you may want to consider new wheels. You’re finances will gain predictability, and you won’t have the added stress of wondering where and when you’ll break down next.

Most people are not aware that weight plays a huge part in how your car performs in all situations. A lighter car has the ability to:

• Accelerate faster
• Stop more quickly
• Handle better
• Get increased gas mileage

Less weight means less work for the engine, brakes, and suspension (this can mean money in your pocket thanks to the engine’s ability to more efficiently use power and less wear and tear on the brakes).

*Lighter cars are also less expensive to register in states where registration fees are based on vehicle weight. When buying a new car, consider the cost savings of lighter vehicles.

Everyone has a theory about the best time to buy a new car to get the lowest prices. As it turns out, however, there really are certain times of the year when you can get extraordinary deals:

• December—it’s the end of the year and the dealers are worrying about making end of year quotas

• July through October—dealers are trying to make room for the new model year cars

Very often there are unadvertised factory to dealer incentives during these periods. Even if the dealer splits the incentive down the middle, you still get a great deal.

If you are buying a new car, you need to consider the increased costs to insure and register the vehicle. Before you get your heart set on a specific model, narrow your field of possible cars down to a handful, and then check with your insurance company to see which ones are the most economical to insure.

You will be surprised how much of a difference in cost for insurance and registration can exist between seemingly similar cars. Other than car model, things that can affect your premiums include your driving record and where you live.

*Insurance companies frequently offer safe driver discounts to those with clean driving records. If you live in a low-crime neighborhood where car theft is a rare occurrence, you can shave as much as 15% off your premiums.