Save Thousands On Your Next Car Purchase

Happy Friday, friends! 

You’ve heard us talk about the “Big 3” (housing, transportation, and food) a few times, and that’s because we truly believe that these three things are the best way to curb spending and save money in the long run.

We also have the data to back it up.

According to the Bureau of Labor Statistics, these make up at least 53-64% of the average budget, with transportation alone sitting at a whopping 17%. 

So how do we save money on these when they’re vital to our lives?

First, we start off with one thing at a time.

Today, we’re breaking down transportation and how we can save big time on our next car purchase. 

ℹ️ Our Car Buying Guide

We know that it’s a tough decision between buying new or used cars, and there are important factors to consider like safety, features, and longevity.

So while we do recommend purchasing a car that is 3-5 years old, you need to see the math and decide for yourself! 

Average Cost:

• New Car: $48,397 

  • Monthly Payment: $737

• Used Car: $25,571

  • Monthly Payment: $520

*Note: The average new car purchase price has held steady from record highs in 2022, but the average used car monthly payment has dropped by 3.3% in 2024. 

Now, that’s a $217 difference. A big difference, which could mean you have $217 more in your sinking funds, or $217 more to go towards debt every month. And for those of you who are skeptical of buying a used car, consider the time, I (Kim), bought a used car with only 3,000 miles on it. I’d call that practically new, but without the 10-15% initial depreciation.

If you’re bought-in in the used/pre-owned car idea, here’s a checklist of what we consider our “golden rules” of car buying.

📋 The Checklist  

✅ Make sure it’s 3-5 years old. At this point, the car still has good safety features, and there’s no crazy depreciation the second we leave the lot.  

✅ Look up the car’s relative value, accident history, and the cost of a loan with Kelly Blue Book for free. 

✅ Consider the resale value. SUVs, trucks, and crossovers tend to have better resale value than cars, and even if you plan to drive it ‘till it dies, it’s important to be aware of what the cost might be if it comes to selling it. This calculator can help you! 

✅ Use Car Complaints & see what issues are common for certain makes & models. It’s important to know so we can save for problems in the future, or make a different purchasing decision. 

✅ Calculate the mileage. Average mileage per year is 10k-14k, and it’s important that a car doesn’t exceed that for the years that it’s been on the road. 

✅ Lastly, shop around. Not every dealership is created equally, and there can be hidden fees or different negotiation policies per dealership. We understand being short on time, so it’s important to do your research before you go to the lot, rather than after. 

Warmly,
Kim

⭐️⭐️ P.S. Want to share all this goodness with your friends AND earn cool Frugal Friends merch?

**Means this is a sponsored or affiliate section. We may earn a small fee or commission when you choose to try one of our sponsor or affiliate partners. But opinions are still 1000% our own.