Some areas of expense can be complex and confusing to deal with when one struggles with financial situations like outstanding debt. For example, having access to a car can be essential for getting to work and thus securing income. But handling these major expenses is simplified and made less stressful with organization and a basic plan. Here are some sound tips when strategizing on auto ownership. 

 

 

• Skip buying a new auto. While there are benefits to buying a new vehicle, it is not the most cost-effective approach for obtaining reliable transportation to and from work.
• Chat with a mechanic. Mechanics can share a wealth of advice regarding which types and model years of cars to consider buying, as well as how many miles on a vehicle to tolerate when making the purchase. They oftentimes know which model years are the best and what mechanical weaknesses particular cars and trucks have.
• Use their recommendations to do Internet research for the best vehicles. Because of outstanding debt, finding a car should essentially be an optimization of three variables: (1) purchase price; (2) fuel economy; and (3) future cost of ownership including maintenance. Styling, luxurious amenities, and brand image should not be primary considerations.
• Consider alternatives to auto ownership. Things you can do to get to work include: carpool, ride a bicycle (and quitting your gym membership in the process), and taking public transit (buses, subway, trains, and light rail). The goal is simple: get to work in a cost-effective way. Depending on metropolitan area, there may even be pre-tax vouchers available for commute expenses. Check with your human resources manager and take advantage of these opportunities to save money. Many of these options are great in urban areas since the total cost of ownership, parking, and maintenance of any vehicle is high.

Worried about being able to conveniently get around? If you opt to not have a car, you can still grocery shop, get away on the weekends, and have the occasional road trip. Use Zipcars or taxis for grocery shopping; get a cheap rental car with all travelers sharing the cost; use the cars of friends or family when needing to travel far; and pick up copies of all of the various transit schedules (buses, trains, etc.) and keep them handy.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.