Owning a car may provide freedom, but the true cost of owning a car also drags us down. Thankfully, thrifty drivers have come up with ways you can save on the overall costs of car ownership.
Our wise driver’s guide is a round-up of tips on how to save on insurance, maintenance/repair, gas, and financing.
Save Money on Car Insurance
1. Shop Around For Cheaper Rates
You may think you have a reasonable plan, but do yourself a favor and do research online for the best auto insurance rates. Chances are you will find a plan that is better suited to your driving record and therefore cheaper.
Another route is to see if you can get cheaper insurance through your bank by bundling it with their other types of insurance.
2. Choose a Simpler Car
If you are in the market for a new car, determine how much insurance would cost you for the different models you are considering. Cars with higher safety ratings, low repair costs and less desirability for thieves will have lower insurance.
Buying a used car is also an option, but a used car can come with plenty of hidden costs. Be sure to read our 8 factors to weigh before you buy a used car.
3. Increase Your Deductible
If you have a good driving history, consider raising your deductible. This will save you money on your insurance, but when you make a claim you will end up paying more.
4. Pay by The Year
It is always cheaper to pay your insurance for the year upfront rather than month-by-month. However, you should always see how much cheaper it would be, and weigh that against the cost of spending a large sum all at once.
Save Money on Car Maintenance and Repair
1. Learn to do The Basics Yourself
The best way to save money on your car maintenance is to do the basics yourself. Changing a car battery, wiper blades, brake lights, oil and air filters are all fairly simple. To learn how to do these tasks, check out YouTube DIY tutorials for your car model.
2. Make Sure You Perform Preventative Maintenance
Making sure you keep up with regular car maintenance will save you plenty of money in repair costs. Make sure you regularly perform these tasks:
- Oil Change (3,000 – 5,000 miles)
- Transmission Fluid Change (50,000 – 100,000 miles)
- Coolant Change (2 – 3 years)
- Brake Fluid Change (2 years)
- Power Steering Fluid Change (50,000 – 100,000 miles)
- Tire Rotation (Every six months or 6,000 – 8,000 miles)
- Brake Pad Replacement (approximately after 50,000 miles)
- Repair of Minor Paint and Windshield Damage as they occur
Spend the money now to save money in the long run.
3. Find a Mechanic You Can Trust
Nobody likes ending up being charged through the nose for car repairs. How do you make sure you are getting the best rate for car repair, and aren’t being charged for services you don’t need?
If your car is under warranty, using the dealership will cost you a hefty premium and should be avoided. To find a mechanic you can trust, a good starting point is to ask friends and family who they rely on.
Failing that, read customer reviews about mechanics in your area and shop around for repair quotes until you find one you are satisfied with.
Save Money on Gas
1. Buy Gas Early or Late in the Day
In the warmer months, gasoline condenses in the cooler temperatures of morning and evening. This means that when you pump at those times you will get slightly more bang for your buck.
2. Drive Slow and Smooth
We all want to get where we’re going faster. However, driving slow and accelerating smoothly uses gas more efficiently than putting the pedal to the metal.
3. Easy Braking
Braking too often or suddenly is wasteful on gas and causes wear and tear on your brake pads. Keep more distance with the car ahead of you in traffic and don’t race towards a traffic light that you may need to brake for.
4. Don’t Keep Your Engine Idling
Waiting to pick someone up? Turn off your car engine, particularly if you don’t know how long they are going to take to get there.
5. Use Public Transit or Walk When Reasonable
Owning a car doesn’t mean that you have to use it anytime you need to get somewhere. Weigh the cost of gas and parking against using public transit if you can use it to get to your destination.
And of course, if you can walk where you are going, consider giving your car a break and using your feet!
Save Money on Financing
1. Round Up Your Payments
If your recommended monthly payment is $189, consider rounding it up to $200. Adding this extra amount won’t be a huge burden, and save you interest in the long run.
2. Make An Additional Lump Payment Annually
If you can afford it, pay off your loan faster by contributing one extra payment a year. Even a one-time payment of $500 can go a long way towards saving you money in interest.
3. Do Not Skip Payments
If you are offered the choice to skip payments once or twice a year, don’t do it. This will lengthen your loan and cost you more in interest.
4. Manage Your Credit Score For Better Interest Rates
If your credit score is low you won’t be offered the best interest rates on financing. Chances are this affects plenty of other financial decisions you make and is a source of frustration.
If you need help repairing your credit rating, consider reaching out to us at RepairCreditQuick. We will provide you with a free credit report and a free consultation with one of the top credit repair companies in the United States.
Don’t settle for paying more on your lines of credit, contact one of our agents today.