Tips

Juggling Transport Costs to Save Money

May 28, 2015

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For many people, the cost of transport is one of the largest outlays each and every month, whether it’s because they’ve got several kids to take to and pick up from school, or the commute is a long way every morning. Finding the cheapest and most effective way of paying for transport can be quite tricky, with a lot of things to think about.

Public transport for instance, is no good for a lot of people, because for their particular journey, it can be very expensive or very time consuming. There’s also not a lot that you can do to change things. The cost is the cost, and aside from buying things like season tickets, you’re at the mercy of whichever company or government organisation sets them.

This is of course why many people choose to drive, because to a certain extent, you can decide how much or little things cost you. If you want to keep things to an absolute minimum then you can, but you can also pay for those little extra luxuries that make your journey that bit better.

Where many people do fall down however is not realising where things are actually more expensive that they might at first appear. The best example of this is buying a cheap used car outright, versus paying for a new car monthly either on finance or through a leasing company. Many people immediately consider the monthly payment as just another thing to come out of their wages that they can’t really afford, so choose to buy a cheap runabout used.

In the long run however, this might work out more expensive than simply purchasing something on finance. This is mainly down to the fact that new cars are cheaper to run than used ones, owing to better reliability and better miles to the gallon. Paying off a loan isn’t the only option either; you can lease too, which is similar to renting. You might think it’s for business cars only, but you can get family ones too.

So if you currently own a car, and want to make transport costs more manageable, then it might be worth selling it for the cash, and then taking out a finance agreement for a new one. You’ll have one monthly cost to worry about, but fuel costs will be less, and you’ll have a warranty to protect yourself from reliability issues.