Cars and Bankruptcy

If you sometimes wonder where does all my money go every month, you are not alone. In my experience doing bankruptcy and debt settlement work, I have found that one of the biggest expenses people have is vehicles. Vehicles are expensive to buy and maintain, and with the price of gas nearing $4.00 per gallon just to fill up your vehicle can be expensive. Buying a new vehicle may end up costing you more than you think if you factor in the cost of depreciation. If you purchase a new vehicle you have tax, title, license, gas, interest payments, principal payments, and depreciation.
A good site to determine just how much your car costs you per mile is, it gives you the true cost per mile of driving your new car, it may be good to check out before you purchase the car. In most cases once you factor in all the costs of a new car you will find that a decent used car is the better option, that has already depreciated, most cars depreciate the most in the first few years, and level off after that. A car is an expensive necessary evil, but you can reduce the cost of that car avoiding depreciation. I see a lot of clients budgets and the actual cost of car ownership is always surprising. The other potential side effect of car payments, is if you cannot afford the car, the lender will take the car back and then hold you responsible for the balance left after the car auction. If you are having budget issues our office can give you guidance to get and stay out of debt.