When you budget your auto-related and transportation costs, are you including everything? There is the cost of the car itself, the monthly loan or lease payment, plus insurance, maintenance costs, and gas of course. Here are four strategies that you can use, covering each of those areas, to lower these costs, from beginning to end.
Saving on Car Payments
If you are considering the purchase or lease of a new car, review your options carefully. This is where you can save the bulk of your money. Really think about saving up to purchase a car with cash, if you can. The money that you will save on interest for a loan can be significant.
Used cars may be a good option for you. They have already depreciated, so you won’t take that hit in value.
If you already have a car payment, do what you can to get the loan paid off early. Not only will you save interest, but you will eliminate debt and have the accomplishment of owning your car outright. If you are in a lease, finish the lease and then consider buying. While leasing a car does have some advantages compared to ownership, in the long run, most of us pay more money for the privilege of a lease.
Saving on Auto Insurance
There are several ways to save on car insurance and lower your payments. First of all, shop around and compare prices to get the best deal. Next, find out if there are discounts with your insurance company that you can take advantage of using. For example, the following things should lower your car insurance: having a theft alarm, driving during non peak hours, practicing low mileage, or the successful completion of a defensive driving course.
Other ways to save include dropping unnecessary coverage, raising your deductible, bundling your insurance with more than one car or with your home, having a good credit score, and having a good driving record.
Saving on Car Maintenance
The secret to saving on car maintenance is to be proactive. Little problems can quickly grow into more expensive problems if they aren’t caught early. At the first sign of an issue, have your car checked. Make sure that you take good car of your car by frequently checking and replacing fluids, but don’t change your oil more frequently that you need. Changing it more often than your car’s manual suggests is just a waste of money.
Research mechanics and find one through recommendations that you can trust. Develop a relationship with the mechanic and the garage. Let them know that you plan to be loyal and bring in new business. It will pay off later when you need costly maintenance or repairs.
Save on Gas Costs
To save on the cost of gas, use a free app to check for the lowest gas prices in your area and fill up when you get a good deal. You may also be able to get a lower rate on gas when you use your grocery store’s club car. Some stores run promotions that give you dollars off of your per-gallon gas price when you shop at their stores.
Try to drive less by combining errands and avoiding short trips. Telecommute or ride share to work, if you can, and walk or bike as well. Less driving naturally means you will spend less money on gas.
Practicing good car maintenance, as mentioned above, will also save you money on gas, since a well-maintained car, with properly inflated tires, is more efficient than a car with neglected maintenance.