Here's part 5 of a money saving article written backwards from Money Central. The title is "20 Ways You Waste Money on Your Car", but it really offers 20 ways to save money on your car. Here are the tips for this time around:
- Not keeping records.
- Buying an extended warranty.
- Overinsuring.
My thoughts on each of the tips above (in order):
1. I keep an electronic log on my computer and all the receipts/paperwork go in a file for just the reasons stated above -- so I'll know what work has been done and when and for resale.
2. I've never purchased an extended warranty and almost everything I've ever read on them says that they're not worth it.
3. I do not over-insure. In fact, there are lots of ways to save on car insurance. See Saving Money on Car Insurance and Suze Orman's Take on Auto Insurance. Also see how shopping around can save you big bucks for both homeowner's and car insurance.
I got snookered on the extended warrantee. When I figure out the math now, it completely irks me -- I could have had the car paid off about 3 months earlier if I hadn't taken it. My car is a reliable brand, so I shouldn't have done it (so far, no repairs)...next time I will know better.
Posted by: annab | April 26, 2006 at 10:37 AM
I have to respectfully disagree on the extended warranty thing. I got a flat and ended up buying 4 new tires for my SUV from Just Tires and spent almost $400. The warranty, which repairs or replaces the tires for free for the lifetime of the tires, was an extra 11 bucks. I said what the hey and bought it. 2 days later, a picked up a nail in my rear left tire on the way to the lake. I called Just Tires and they towed me to the nearest store and replaced the tire for free. If I hadn't spent the extra $11, I would have had to buy a whole new tire!
While it may not be prudent to buy the warranty for electronics, I'd highly recommend it for things like tires.
Posted by: Ciji | January 11, 2007 at 01:23 PM