| In an economic crunch, consumers are cutting back in an attempt to save money. Recent trends show that shoppers are eating out less, buying from second hand stores and purchasing used vehicles over new ones. Over the past few years, families have cut back on dining out. There are two main reasons for the drop in eating out, firstly families have been hit hard by the rise in unemployment and are tightening their wallets in an effort to save money. Additionally, families are striving to keep medical costs low by eating a healthier diet. Most experts agree that people make wiser food choices when they prepare meals at home rather than eating out. Public transportation is on the rise as well. Over the past few years more people have started using local buses, subways and carpools to cut down on fuel costs. In addition, families have switched from high fuel large SUV’s to more fuel-efficient sedan models. Michigan, a state hard hit by the recession due to the struggles of the auto industry, has seen an increase in used cars sales. Sales for used cars in Michigan have continued to climb, a trend evident throughout the country.
Families are saving money in a variety of ways. Both Salvation Army and Goodwill thrift stores have seen a dramatic rise in sales over the past two years. Families are turning away from new designer labels and opting for the gently worn clothing available at second hand stores. In some parts of the country thrift stores have been unable to keep up with the demand, as consumers hold onto clothes longer and donations drop. Clothing budgets have shrunk as families struggle to pay mortgages and basic living expenses.
The struggling economy has also shifted transportation needs. Sales for used cars in Michigan have increased, while more money is being pumped into developing fuel-efficient transportation. Many universities and car companies are researching solar vehicles and producing high quality hybrid vehicles. Some universities have adapted car-sharing programs, which enable students to rent a car for a trip to a doctor’s office or a weekend trip home. The car can be rented by the hour and the cost includes gas, repairs, and insurance. It’s a great option for students that live on campus and only need a car once in a while.
Consumers that are shopping for newer vehicles are often turning to used car options. Financial experts suggest that used cars are much more economical than purchasing a new car. Used cars are a lower cost alternative to new cars and retain their resale value more effectively than new cars. A smart buy is purchasing a used car that is between two to five years old, as many cars may still be under factory warranties. There are many reputable dealer ships that offer great deals on used cars. Research the dealers in your local area that specialize in used cars before you start driving all over town. Also, have in mind a car make and model that will fit your transportation needs. Avoid impulse buying.
If you’re trying to tighten the family budget, start with creating a monthly list of expenses. Be sure to include the total family income and compare that with the total amount of expenses. Look for places in the budget that you can save money. Pick up used furniture at a thrift store or garage sale and cut out unnecessary monthly payments. Creating a family budget is the first step to tackling financial obligations. Be a smart consumer. Cut down on eating out, buy clothing from second hand stores, and when you’re shopping for your next vehicle look for used cars in Michigan rather than new ones. |
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