Owning a car has become a necessity in this day and age, but it’s only getting harder and harder to afford it. That’s why you have to learn new ways how to cut down car expenses. There are many tips and tricks that will help you make owning and maintaining your car easier and much more affordable.
What Are Some of the Car Expenses People Spend the Most Amount of Money on?
Before learning how to make car expenses more affordable, you have to understand what car expenses even are, and what you’re spending your hard earned money on. Car expenses include every cent invested in driving – from buying a fuzzy cover for your steering wheel to your leasing payments. So here is a list of some of the biggest and most important car expenses every owner has to deal with.
The Price of the Vehicle
For starters, the biggest car expense you will have is the price of the vehicle itself – it amounts to around half of the total car expenses. With the high prices of cars these days, you can hardly find a new vehicle for under $15,000, while a used car will cost you at least a couple of thousand dollars, depending on which car you get. Of course, your new car can cost as much as a few hundred thousand dollars – it all depends on what you’re looking for, what size and type of car you prefer, its performance, the year it was manufactured, and so on. Whichever car you do go for, be prepared for monthly loans and lease payments.
Gas and Electricity
Another big expense that will take a couple of thousand dollars every year out of your wallet is the cost of fuel. The cost of fuel is one of the most unpredictable expenses since the prices change quite often, and you can choose between regular and premium fuel, which is more expensive. However, in order to get gas, you will need a minimum of $2,000 annually. People who own EVs will pay a little less since they are paying for the electricity to charge their car, but they will have to spend a lot of money regardless.
Repairs and Maintenance
Regular maintenance and taking good care of your car costs money. You have to wash it and clean it regularly, both the exterior and the interior, as well as the seat belts. You also have to take it to the mechanics pretty regularly for routine maintenance check ups and switching from summer to winter tires. Not to mention that you also have the added expense of repair. No matter how great of a quality your car is, something will be wrong with it at some point. You might have to replace U-joints, or maybe your car thermostat will go bad, or your car battery. Unfortunately, a thing most drivers can’t avoid is a flat tire, which will cost you up to $130, so you will definitely need a good mechanic.
Registration, Insurance, and Other Fees
People spend at least $10,000 a year on their cars, according to AAA. That is not a small amount of money, and it’s only getting more expensive due to inflation and the economy. People can’t afford to own a car anymore, or they have to cut way down on other expenses and give up something else.
But how can you go on with your lifestyle without giving anything up and still afford your car and driving around? How can you cut down on car expenses? Luckily for you, there are some great hacks that will save you a few bucks, so here are some of my best tips to help you out when cutting down car expenses.
How Can I Cut Down Car Expenses?
People spend at least $10,000 a year on their cars, according to AAA. That is not a small amount of money, and it’s only getting more expensive due to inflation and the economy. People can’t afford to own a car anymore, or they have to cut way down on other expenses and give up something else.
But how can you go on with your lifestyle without giving anything up and still afford your car and driving around? How can you cut down on car expenses? Luckily for you, there are some great hacks that will save you a few bucks, so here are some of my best tips to help you out when cutting down car expenses.
Opt for a Cheaper Car
Since the cost of the vehicle will be the biggest expense, make sure you can afford it. Don’t get sucked in at the dealership by looking at all the newest models with the best performance and extra features. Try downsizing and opt for a cheaper car. It will cut your monthly payments way down and significantly reduce your expenses. Also, consider buying a used car. You can get the same model, with the same features, for much cheaper.
Downsize By Selling Your Second Car
Do some soul searching and figure out if you really need and use the additional car or if it’s simply gathering dust and draining out your money. Of course, if you have a family and you really need two vehicles, leave it. However, if it’s just you, sell the first car – it will be enough for at least a couple of months worth of payments, no matter how old the car is.
Take a Second Look at Your Car Loan and Refinance
A smart way of saving money not a lot of people think of is refinancing. If your credit score is getting worse by the day, and it’s gone up since you got a car loan, look for a new lender. Even if you got a bad interest rate from the start, find a new lender to refinance your car loan at a lower interest rate. It will save you hundreds, if not thousands of dollars over the time of the loan.
Change Your Insurance Coverage
Even after the car has been paid off, insurance will still remain a constant in your monthly bills. So think about the ways you can make it a bit more affordable. By paying insurance at a lower rate, your premium will be significantly lowered, and it’s a great way of reducing car expenses. So call your insurance provider, and here are a few ways you can cut down on expenses.
Simply Change Your Coverage Plan
A long time ago, while you still had money to spare, you probably chose the best possible coverage plan and the most expensive one as well. However, times have changed, and since you haven’t got a scratch on your car, it might be time to change your plan. Of course, insurance is there to protect you and keep you safe, but it could still have a pretty similar effect without all the bells and whistles.
So search through your coverage plan and get rid of all unnecessary policies, such as enhanced glass coverage. Just don’t take out anything important, thinking you will never need any of it. While this way of reducing costs could save you a lot of money, always have your safety and protection as a top priority. Also, keep in mind that this option won’t be available to you if you’re leasing a car and still haven’t paid it off. Most dealerships won’t allow you to have any form of insurance other than a full-coverage plan.
Switch Insurance Providers
If your current insurance provider is giving you a hard time when negotiating a lower interest rate and a lower premium, simply switch providers. Do some research and look for a different insurance company that might be able to provide you with a similar coverage plan at a lower cost. You might end up getting a much better deal and saving tons of money.
Search for Hidden Discounts
Most insurance companies have a few hidden discounts and hacks for saving money. Not many people know about these hacks, but they can significantly reduce your costs. The most popular discount is the one where insurance companies offer discounted premiums for people who have taken a defensive driving course. These courses teach you all about safe driving in general, which is supposed to reduce your chances of getting in a car accident.
A great thing about this option is the fact you can take a lot of these courses online, and you will have the same protection plan, just at a lower cost. Another option most companies offer is a discount if you add more things to your insurance plan. This discount usually comes when you add renters insurance, so ask your provider about it.
Learn How to Do Basic Things on Your Own When It Comes to Maintenance
You have to regularly take care of your car. That means you should take it to the mechanics for checkups quite often and don’t put off repairs. And while that is the case and you should maintain your vehicle, there are some things that don’t require a trip to the mechanic and that you can do all on your own, even if you don’t know that much about cars.
Trips to the body shop for small repairs cost a lot of money, and if you learn how to do a few simple things by yourself, you will have hundreds of dollars easily. Start with the simple things, learn how to replace windshield wipers on your own, then move on to pumping air into the tires and fixing tire pressure. Just don’t get overconfident and start fixing things that are better left to the professionals. You can learn how to change a tail light, but don’t try fixing your clutch master cylinder on your own. Safety is the most important thing, so always get professional help when it comes to larger repairs.
Simply Use Your Car Less
Such an obvious solution, but if you use your car less – you’ll pay less for it. You won’t be spending money on fuel as often, and your car will stay intact much longer. It might be difficult getting used to using your car less frequently and avoiding joy rides, but here are some alternatives:
- Take care of as many things as you can when you do use the car – If you decide to drive your car only once a week to cut down on expenses, then plan ahead and write a checklist of all the errands you should cover while you’re out. It’s much more budget-friendly than pulling your car out of the driveway for every small errand.
- Carpool as often as you can – Ask your coworkers, schoolmates, or friends if you can tag along with them for a drive if you have similar routes, it will save you a few bucks.
- Use public transport or walk – If all else fails, there is no shame in using public transport if you own a car. Sometimes, the commute can even be faster since you can avoid major traffic jams. Also, if it’s nearby, get out of the habit of driving a short distance and get used to walking longer than 10 minutes.
Just Remember to Never Put Money Before Safety
No matter how much you want to or need to save money, never put your safety at risk just to save a few bucks. If you think there is something wrong with your car, you have to take it to the mechanics for a proper check-up and repairs. Never put off fixing something on your vehicle in order to save some money. It won’t go away on its own, and you’ll end up causing more damage and paying more along the line.
