Diary of a future rentier (9)

Between gas, utilities, leasing, insurance, and taxes, a good portion of my disposable income ends up in my car. All of these costs eat into my savings and delay my goal of financial independence. The ideal would of course be in theory to use public transportation and resell my vehicle, but in practice this is impossible. However, if I cannot do without this expensive means of transportation, I can optimize it as best I can.

Rather than renewing my lease, I have been putting money aside for several months to buy my next vehicle. Even though leasing rates are currently low, this is money being thrown out the window. I am therefore setting aside part of my income for the purchase of a future vehicle, rather than paying interest to a third party for the one I drive. In my budget, this provision replaces my leasing costs (at a lower cost) and is added to the savings I am already making to acquire my financial independence.

It should be noted that this method can also be applied to insurance: rather than paying a premium against certain small risks, we regularly set aside a certain amount that we can use when the event occurs. And we keep traditional insurance for the big mishaps of life.

The other thing about my car is its engine size, with the insurance costs, fuel consumption and taxes that go with it. So I decided to go for an engine that is as economical as possible. After all, even if I have to use my car, I don't have to go fast. It's environmentally friendly, economical and safer.

To find economical vehicles, the best thing is to focus on the cost price per kilometer, taking into account fuel consumption, maintenance costs, insurance policies, loan interest, depreciation, ecological bonuses or penalties, etc. This information can be found on sites such as The Auto TribuneThis gives us an overall view of what your car really costs.

Then you still have to choose whether you want to buy new or used, knowing that in use the second option is not necessarily cheaper than the first. By buying new you can indeed resell later more expensively than used or keep your vehicle longer. The depreciation is less important for a used car but its maintenance costs are in return higher. For me this question depends mainly on the liquidity that you have and the trust that you have in the seller. It is important to know what you are looking for (make, model), then to make a overall market ideaThe choice between a new or used car will then be made quite naturally.

The cost of a car will always be high. But by practicing rationally and methodically, you can significantly reduce the bill. If you cannot do without a private vehicle, this is the least bad solution.