Although the price of gasoline is a proper focus of commentary about affordable personal transportation, other factors must also be considered, including the price of insurance, licenses and the vehicle itself. Although aging automobiles generally have lower miles per gallon ratings than newer models, significant non-fuel savings may be realized when liability coverage, licensing and cost of the vehicle itself are added to the mix; in most cases, old car insurance offers an opportunity to lower costs.
Significant savings in transportation costs will be realized when ownership of an older, rather than a new, automobile is the goal. Typical new car prices start in low five figures and rise to the thirty-five thousand dollar range; this may result in 5-year loans with $500 or $600 monthly payments. Careful, purposeful shopping for a reliable brand name car five to ten years old can yield dependable transportation for much less than $10,000.00, but you should be prepared to pay cash, or to make a sizable down payment if you can find financing. Do not fail to have a knowledgeable mechanic inspect any car you find before you buy it.
An old vehicle can be classified as an antique if it is either 25 or 35 years old, depending upon the state in which it is licensed; designation as an antique is the owner’s option. Licensing costs are less because the state anticipates, indeed may require, that the car be driven a limited number of miles annually; this limit may range from 500 to 1,000 miles per month depending upon the state. Old car insurance for an antique vehicle will also be less due to the same expectation and to better care and safer driving by the owner.
However, an older car need not be an antique for an owner to attain lower insurance costs. After a car is about five years old, it may not be economical to carry comprehensive coverage, which is that part of the policy that pays to fix your vehicle if it is damaged in an accident. For one thing the value of the car has diminished; also it may make more sense to find replacement parts, whether they are glass, light covers or fenders, at an automobile salvage yard and pay a good body man for repairs if needed. It is also likely that the loan has been paid off so there is no need to provide comprehensive coverage for the lender.
Automobiles now are better designed and built than thirty years ago so driving one for several hundred thousand miles is not unusual if it is properly maintained; this often consists of little more than a regular oil change. Check out websites like hypermiling.com where you can learn techniques used by Prius owners when they obtain mileage ratings in excess of 100 mpg. Consider buying an older vehicle to relieve yourself of onerous monthly payments and to realize some savings with an appropriate old car insurance policy; be sure to ask for maintenance records when buying a used vehicle. It is, quite simply, not hard to realize a less expensive method of personal transportation than you may now have.
For more information Visit our BLOG or go directly to our WEBSITE.
Recent Comments