You need help from ASIC to spend less on your car

https://www.moneysmart.gov.au/life-events-and-you/life-events/buying-a-car/car-buying-in-Australia?utm_medium=email&utm_campaign=MoneySmart%20Tips%20-%20September%202016&utm_content=MoneySmart%20Tips%20-%20September%202016+CID_9533f89073670db7eb17acc0ae5f0db0&utm_source=CampaignMonitor&utm_term=new%20infographic

I’m always asking myself the question to see if I should change my car. Every couple of years, we all do. And most people I know actually are “investing” in a new car every 3 years. I drive an old Peugeot (Yes ! A French car for a French guy, how classic!) 306, since 2010. This car is nearly 20 years old. But it drives great. Sometimes I’m pissed off with the money I spend on fuel, insurance, etc…

But seeing the new report from ASIC around Australia and car ownership, I was in chock but also feeling better: Compared to many, I don’t spend that much.
You can access the full (excellent report) here: https://www.moneysmart.gov.au/life-events-and-you/life-events/buying-a-car/car-buying-in-Australia?utm_medium=email&utm_campaign=MoneySmart%20Tips%20-%20September%202016&utm_content=MoneySmart%20Tips%20-%20September%202016+CID_9533f89073670db7eb17acc0ae5f0db0&utm_source=CampaignMonitor&utm_term=new%20infographic

What we learn:
– Many are driving cars that are consuming above 10l / 100kms. That’s insane! In an age where we now have cars that consume sometimes less than 5L per km, why would we do this?
If I read the report, that means that we could instantly save around $800 per year, just by switching to a fuel efficient car
– 13 000kms per year… WOW… I do less than 5000kms per year and I have one child at school that is 10kms away from our place + I’m a sales guy, always on the move…
We should question every time we take the car: Can I walk to the groceries instead of driving, can I walk to the beach instead of driving, can I take my bicycle to go to the gym.
I still see my colleagues driving down from work to the gym to “exercise” – That’s 500m. It would help your body and your wallet if we were all walking (even better, running) to the gym. Not mentioning the environment…
– People buy a lot on finance (more than 50% of the time). I have discussed the details http://www.quest2independence.com/finance-australia/bmw-vs-fiji/  and we should NEVER buy on finance. If we are forced to, we should review of need vs our wants. We need a car, but maybe not a BMW…
– More interestingly, we buy new. This is very very hard for me to understand. As soon as you turn the key on for the first time, If you consider (according to the report), that we buy cars on average that are worth nearly $28k AUD, we’re wasting already few thousand dollars from day one. We could buy the same car, one year old, for $23-$25K, and also save on stamp duty in the process.

See Y’all!

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