The secret is out on car budgeting accounts
When it comes to better managing our everyday expenses, the cost of buying and maintaining a car is a major part of that challenge for most Australians.
But there is a smarter way.
Surveys show that our most popular medium to large sized cars can cost between $200 and $250* per week to keep them on the road, so cars certainly form a major component of our living costs.
Since most of us need a mode of transport these costs are unavoidable so the best approach is to budget for these expenses, not necessarily think that we can significantly reduce them.
Few people know there are tools available that can help track and manage these costs.
A car budgeting account is a new and specialised account that has emerged that fills a previous gap in the market around an ability to track expenses, budget and pay bills while also reducing interest charges.
Depending on your financial institution, a car budgeting account can be linked to your loan, which you can use to build up savings to cover insurance, registration, fuel, servicing and repair costs.
A dedicated access card linked to the account can be used to pay these expenses and there are generally no fees incurred if you pay through popular payment channels. On top of that, the balance of the account reduces loan interest by working as an offset facility.
With an account that allows you to easily track and manage expenses, your focus can be on reducing any associated debts you may have on the vehicle, in most cases, a car loan.
It’s a smarter way to manage car-related expenses and can help free-up income in the weekly budget.
Selecting a new car can be an emotional decision, but it is important to ensure that the way you finance the purchase and manage the expenses are at the forefront of your decision-making process.
Take stock of your financial realities to ensure you’re not overcommitting yourself, and even consider applying for a pre-approved car loan so you’re clear on how much you can really afford to spend.
Your choice of loan may well be influenced by whether a car budget account can be attached to the loan – because the value of such a savings device cannot be understated.
^Robert Keogh – Chief Executive Officer