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Your
Car as “Piggy Bank” – Part One
| Introduction
I
am often teased, more so by those who know me well,
and particularly those who have worked with me on a
number of vehicle purchases, that I tend to treat cars
more like piggy banks than (sometimes) frivolous modes
of transportation. What do I mean by that? I mean that
with your car being your second most expensive investment
(your home being your first), it’s important that
you think of it as a piggy bank that can help you hold
on to more of your money, provided you make the right
choice. This may be good for a laugh, but there is a
great deal of truth to the statement. Just as you wouldn’t
want to owe more on your home than you could sell it
for, the same applies to cars. Yet people get into “negative
equity” (owing more on the car than it is worth
at resale or trade-in) situations with cars every day.
I’m almost fanatical about counseling clients
against this, and I work to ensure that every buyer
I help with a purchase gets the best possible value,
both short- and long-term. It takes a certain amount
of research and consideration, as well as a long-term
knowledge of the car market, and with these handled
correctly, you can drive a great vehicle without throwing
money out the window!
Most
people invest a lot more money (often without even realizing
it) than they need to in order to drive the cars they
drive. Knowing the issues surrounding the vehicle you
intend to purchase and their long-term impact on your
finances can guide you toward a cost-effective investment
(keeping more of your money in the bank). Your car investment
will be even more financially sound, or at least less
wasteful, by allowing a little leeway or “wiggle
room” in your criteria (for example, if you are
open to several different models or model years). On
a daily basis, I help people considering vehicles from
$8,000 to upwards of $100,000 make good long-term financial
decisions – while driving cars they adore.
Now,
I know that some of you have to have a certain new model
at a certain time. I help clients work out these purchases
every day. But many of you simply need good, reliable
transportation within a certain price range and/or vehicle
type – and I can really help you locate incredible
finds at great prices. My policy is to determine every
possible aspect of the buyer’s criteria, then
work within those guidelines to find the perfect car.
There
is no standard formula for all buyers. The many different
variables applicable to each owner’s purchase
must be considered as they apply to that person, on
that vehicle, at that time. But if we compare the client’s
checklist to the purchase being considered, we can find
an ideal solution, placing the client in the vehicle
he/she desires for an expense that makes great financial
sense.
In
the coming issues of Frank’s Inside
Track, I’ll be highlighting various
factors that can greatly reduce the amount of money
you spend on transportation. I’ll include clear
examples of how these factors can affect the actual
cost of the vehicle you drive. I’ll outline common
mistakes that usually result in your second largest
investment being a less than desirable one. Those of
you less familiar with my service may be surprised to
learn how simple and painless it can be to drive great
vehicles for less money. Money that can eventually,
over a lifetime of car purchases, add up to a surprisingly
significant amount of cash – cash you could be
spending or investing elsewhere.
I
hope you find the new series useful, informative, and
maybe even a little entertaining.
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