Money-Saving Tips from Tibs and Shell

[Fidel_Castronaut]

Pay cash when you can for new automobiles. Paying interest on something that depreciates instantly, do the math.

Another way to look at this: don't buy a car unless it's at least three years old.  It will have lost considerable value within the first three/four years but should still be in good/great shape.  For luxury cars that rule is more like six-to-eight years.

Also... I don't have a budget-- I keep a ledger.  Instead of planning my spending beforehand, I track it as I go.  Looking at my ledger tells me how much I'm actually spending on stuff, including stuff I need (food, mortgage, utilities) and stuff I can do without (entertainment, miscellaneous items).  Knowing where my money is really going is a great help in figuring out where to cut back.

This accountant approves. Never, ever buy new cars. The depreciation in a new vehicle is beyond a joke, far more than almost any other asset I can think of. Second hand is the way to go. You still lose money, but you lose a lot less. And never go for finance if you can afford cash. PCP and HP finance deals are always without exception some of the worst finance rates on the market. If you have to borrow, try a bank first or the credit card thing I mentioned above.