5 things to know about owning a car in this economy

The supply chain is still on the battle bus. The market is v unpredictable. And inflation is getting scary (see you gas prices and insurance premiums). Your wallet is likely to suffer at every turn, and we have a feeling your car does too. So we teamed up with the experts at Safelite® to compile a few things you should know about owning a car in this economy.

1. An emergency fund is a must

Sometimes in life the unexpected happens. And sometimes it happens to your car. Alleviate the ensuing panic attack by standing up an emergency fund.

AAA sets the average auto repair bill between 500 and 600 dollars. That is not cheap. Case in point: 64 million American car owners said they had to borrow money to pay for car repairs. But no worry. You don’t have to put away hundreds of dollars at once. Setting aside smaller pieces each month can help you prepare financially. And we have tips for that:

• Create your own account. Instead of mentally making a note of monthly contributions, set up a real emergency fund through your bank. Bonus points if you do one just for car cost.

• Set up automatic transfers. Schedule an automatic transfer from your paycheck or checking account to your dedicated account so you don’t have to lift a finger.

2. Keeping up with maintenance and repairs can save you money

Not-so-fun fact: One-third of American car owners delay or skip maintenance altogether. And that can lead to mechanical problems or a roadside breakdown. Plus heftier repair bills.

Example: You are driving and a rock hits your windshield, leaving a small rock chip. It may seem like no problem. But chances are a chip will grow into a crack and make your car unsafe. And fixing a small chip before it spreads costs a lot less than replacing the entire windshield. Luckily our friends at Safelite make windshield repairs and replacements super easy. You can book an appointment for one of the many locations online in just a few minutes. In most cases, they will even come to you.

3. There are ways to save on insurance

Insurance is like a safety net that will catch you if you fall. It might feel like you’re spending a lot for nothing, but a) a car owner’s life could get a lot more expensive without it and b) most states require you to have coverage. The silver lining? There are ways you can save a lot of money. Here are a few:

• Practice safe driving. Easier said than done. But many insurance companies offer discounts to anyone with a clean driving record.

• Shopping spree. You’re not married to your current insurance provider, so explore what else is available. Get quotes from other companies to see if you could get the same coverage for less.

• work on yours credit-worthiness. That three-digit number is one of the many ways insurance companies decide how much you should pay. If you have a high score, you probably have a lower reward.

4. Sometimes you have to upgrade

Buying a new car is a combination of excitement and stress. Especially these days (hiiii, inventory issues and inflation). But understanding when it’s time for a new one instead of putting $$$ into your old one can help you save in the long run. Here are a few things to note:

• Maintenance costs: Does your car spend more time in the workshop than in your garage? It might be time to start shopping.

• Hot Features: The latest models inevitably have the latest and greatest (think rear-view cameras and blind-spot monitoring).

• Fuel efficiency: Newer cars are likely to be more fuel efficient than the one you drive. Depending on your car’s current MPG (tip: miles per gallon) an upgrade might be possible Save up to $1,000 a year at the pump. Oh, and the Anti-Inflation Act means you can cash in tax credits when you buy an electric vehicle. Never pay for gas again and reduce taxes? Talk about a win-win situation.

One more caveat: if you end up needing a windshield replacement on this fancy newer vehicle, you’ll probably need to recalibrate your advanced safety system as well. Because when you have your windshield replaced, the front-facing camera mounted on your rearview mirror needs to be recalibrated to manufacturer standards in order for features like emergency braking and collision warning to continue to work properly. It sounds complicated, but the TLDR is Safelite takes care of everything in one appointment.

5. Buying a car in today’s market is…difficult

Supply chain constraints and economic conditions are rocking the auto industry. But what does that mean for anyone looking for a new vehicle?

• Limited stock. When you walk into a dealership lot, don’t expect to see as many options as in the past. As manufacturers limit production, flexibility in colors and models is key. Especially if you want your car sooner rather than later.

• Loans could become more expensive. ICYMI: The Fed has already hiked interest rates five times this year (affecting what you pay to borrow money). Experts assume that they will stay tuned. And higher rates can mean higher payments, which can impact your budget month after month.

the skimm

Buying and owning a car is not a piece of cake in today’s economy. But being financially prepared and understanding the current state of the auto market will make the experience a lot less stressful.