Smart Motorist

The answer may depend upon how far you drive each year Fuel prices drop Options to buying a car Cost of maintaining an auto Driving habits affect care costs Good care gives used cars longer life Consider renting for vacations. For those who live in their car, getting it serviced can be a problem. Look for a lease or purchase that includes free loan cars. Infiniti dealers, for instance, include loan cars as a matter of company policy. That's a valuable accessory. To be competitive, other car companies may offer the same deal if pressed -- so ask. In addition, a person who owns his car has equity (cash value) in the car or truck. Even though it will continue to depreciate with each passing year, so long as it's still serviceable transportation, it will always be worth something. That value can be used as a trade-in; or the vehicle can be sold privately to help raise money to pay for a new one -- or for some other need. 

The wisest and thriftiest course is to pay cash for your cars. If this is not an option, I highly recommend you obtain financing before you settle on a particular vehicle.

Are extended warranties worth it? Unless you're prepared to pay for the very best policies from the highest rated companies, I find them more trouble than they're worth. One specific exception is a manufacturer's certification on a used car: this is extremely valuable, but the car will cost top dollar, and you can't choose to buy it.

Loans versus Leases - Loans enable people to buy things. A lease is a rental agreement. Once you make all the payments on an installment loan, you actually own your car; whereas, when all the payments are made on a lease, you own nothing.

The actual cost of renting a car can exceed advertised rates from 50 to 75 percent when you add up all the fees, taxes, and surcharges that rental companies tack on to your bill. The best way to avoid a surprise is to ask lots of questions before you sign.  Traditionally, rental car companies don’t disclose the extra fees and surcharges when you are quoted a rate over the phone.

Insurance fraud has become a major financial problem for both insurance companies and consumers. The National Insurance Crime Bureau reports that insurance fraud costs the insurance industry an estimated $30 billion each year.

Most vehicle owners transfer their existing insurance policies over to their new car. If you've been with the same company for a long time, however, it doesn't hurt to see how they measure up to other carriers. The difference between insurance companies can be staggering!