Car ownership can be expensive, costing an average of $9,282 yearly or $773.50 monthly. Nevertheless, this varies depending on multiple factors, including miles driven, vehicle type, car’s sales price, annual insurance, gas cost, depreciation, car maintenance, finance (payments toward car loan repayment), and registration, license, and taxes. When ignored, car costs can spiral out of control. However, you can find tried and tested techniques to help keep your spending in check. Here are five easy ways to reduce your car expenses.
- Find ways to lower fuel consumption
Reducing your car’s fuel consumption is an excellent way to save money at the pump while cutting down your vehicle expenses. The car’s fuel efficiency reduces if your tires aren’t properly inflated. Nonetheless, ensuring proper tire inflation reduces gas wastage. Using cruise control, accelerating and braking steadily, driving only when needed, and coasting whenever possible increases your vehicle’s fuel economy.
You can also reduce fuel consumption by lowering air conditioning, keeping windows closed, avoiding idling, minimizing the drag on your auto, and lowering its weight. Addressing maintenance problems that result in poor gas mileage, including bad tire condition, poor oxygen sensors, clogged air filters, fuel injection system issues, and old spark plugs, can also help.
- Reduce your car insurance
Lowering your auto insurance is among the best ways to minimize car expenses. When looking for car insurance, shopping around and comparing car insurance can help you find affordable rates. Most insurers give discounts to multiple policyholders. Bundling your policies, including homeowner’s insurance, car insurance, and life assurance, can help you access favorable rates.
Auto insurance discounts, such as car safety, good driver, new car, good student, and multi-car discounts, can also come in handy. You can also take a certified defensive course and raise your deductibles to reduce vehicle insurance costs. Insurers usually look at your credit rating to determine your auto insurance rates. So, boost your credit score to access better rates.
- Adhere to regular car maintenance routine
Routine car maintenance is essential for reducing car expenses. It helps ascertain that your vehicle doesn’t experience sudden breakdowns, which may lead to costly repairs. Regular car checks involve getting the essential systems and components inspected, replaced, and repaired as required. This boosts fuel efficiency while improving performance.
Sticking to a regular vehicle maintenance schedule helps you keep it longer, reducing the risk of spending more replacing your car. However, ensure you’re dealing with a professionally qualified mechanic to prevent the risk of the car issues worsening.
- Refinance your auto loan
Refinancing your auto loan and taking a new car loan to repay the existing one. It can be an excellent option if you’ve worked toward improving your credit score after the first loan you took. You can get reduced interest rates with new lenders based on your vehicle’s equity and credit score. Car loan refinancing can also minimize your monthly payments thanks to the improved interest rate.
- Downsize your car
One of the primary reasons for downsizing your car is the financial rewards it brings. A smaller vehicle will be more affordable due to reduced insurance, fuel costs, servicing, and road tax. So, look for a tiny car that’s fuel efficient.
Vehicle ownership isn’t cheap. Nevertheless, implementing these tips can lower your car expenses.