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.