Saving Money
Shopping & Saving
Where does your money go?
Airline Fares
Include a Saturday night stay-over, and you purchase your ticket in advance. You
can reduce the price of a round-trip airfare by as much as two-thirds. To make certain
you have a bargain fare, even if you use a travel agent, call all the airlines that
fly where you want to go and ask what the lowest fare to your destination is. Keep
an eye out for fare wars and be prepared to act quickly.
Car Rentals
Car rental rates can differ greatly; shop around for the best basic rates and special
offers. Check with your insurance agent and credit card company in advance to see what kind of coverage you have. This way you'll avoid paying for coverage you already
have.
New Cars
You can save thousands of dollars during a car's lifetime by choosing a model that
couples a low purchase price with low financing and insurance rates. Purchasing
a car that has good gas mileage, low maintenance, and repair costs can save you
a great deal of money in the future.
Find new car guides that contain this information
in your local library. Comparison shopping for an automobile can save you hundreds
of dollars. Call at least five dealers for price quotes and let each know that you
are calling others. NOTE: Do not let dealers pull your credit report until you are
satisfied with the price offered. Too many inquires can look bad on your credit
report.
Used Cars
Before buying a used car: Compare the asking price with the blue book price. Have
a trusted mechanic check the car, particularly if the car is sold "as is." Consider
acquiring a used car from a person you know and trust. They will be more inclined
to charge a lower price and point out any problems with the car.
Leasing A Car
Consolidated recommends you use the following as a rule of thumb when contemplating
leasing a car: Do not decide to lease a car just because the payments are lower
than on a conventional auto loan.
Leasing a car can be very complex. Consider the
price of the car, your trade-in value, down payment, monthly payments, and miscellaneous
fees like, excess mileage, excess "wear and tear", and the cost of buying the car
at the end of the lease.
Do not lease the same car for more than 4 years. At that stage you are at the "break
even point" and you need to decide to take one of the following actions:
a) Return the vehicle to its rightful owner (the lessor).
b) Trade your leased vehicle in on a new one. If there is "equity" in the car it
should not cost anything to trade it in. This will typically not be the case until
you are near the end of your lease (in some cases, you may never have equity).
c) Purchase the vehicle outright from the lessor, usually for an amount equal to
the residual value stated in your lease agreement plus any additional fees.
Auto Loans
If you have considerable savings earning a low interest rate, consider making a
large down payment or even paying for the car in cash. This could save you several
hundred or thousands of dollars in finance charges. Shop for the cheapest loan and
you may also save hundreds of dollars in finance charges. Contact several banks,
your credit union, and the auto manufacturer's own finance company.
Car Repairs
Each year Americans lose billions of dollars on needless or inadequate car repairs.
To save money on these repairs you must investigate and find a skilled, honest mechanic.
Before needing repairs, look for a mechanic who is certified, well established,
and has done good work for someone you know - Good luck!
Auto Insurance
Call the state insurance department for publications showing typical insurance prices
charged by various companies. Find a licensed, low-price insurer.
Call four of the lowest-priced, licensed insurers and compare what they would charge
you for the same coverage. Talk to your agent or insurer about raising your deductibles
on collision and coverage to at least $500, or if you have an older car, it might
be wise to drop these coverages altogether. Taking these steps can save you hundreds
of dollars a year.
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