Today on MyMoneyLife with Chuck Bentley

Are you tempted by the low prices and incentives new car dealerships are offering these days?  Well, there are plenty of deals out there right now.

But before you make that leap, here are 3 things to think about:

1. What’s the total cost?  Like houses, cars have costs that extend beyond the purchase price.  So add up not only your monthly payments, but routine maintenance, gas, oil, tags, taxes and insurance—and then make sure that total doesn’t exceed about 15% of your net spendable income.



2. Repairs vs. payments.  Car repairs are a fact of life, unless you’re still under warranty.  Figure around 5% of your net spendable income for repairs—that’s probably half what your monthly payment would be if you financed a new car.
3. Buying new for better mileage.  Lots of folks justify buying a new car to get better gas mileage—but it may take years to recoup the cost of buying new—so better mileage usually isn’t a good enough reason by itself to take on monthly car payments.

In fact, some hybrid models can take many years to pay for the premium cost of the new car when determined by the amount of money you’re actually saving in gasoline.

In other words, you’re probably better off to buy a used car, keep it well maintained, and drive it very conservatively.

But sometimes buying a new car makes sense—and prices are low right now.  So, if you decide to buy new—try to pay for it in cash—or put down as much as you can to keep financing costs very low.

I hope you’ll take 60 seconds and visit us online at Crown.org.

Automobile Insurance

Most states require that every registered vehicle carry some sort of auto insurance coverage. But even if they do not, it is a good idea to have auto.

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Reducing Auto Expenses

Owning a car is necessary for most people in America today. Managing that car properly is part of being a good steward.

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Auto repairs, mechanics, and extended warranties

Important things to know that can help cut your auto expenses.

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Buying a New Car vs. Keeping the Old One

Many families buy cars they can’t afford and trade them in long before their usefulness has expired.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes