It’s hard not to see owning a car as one of the most significant personal expenses you make every single day. You may find it convenient to own a car because you can travel anywhere by owning one. But, after you add up the costs of maintaining the car and other overhead fees, you might be better off just using public transport. If you still really need to have that car with you, then there are solutions that you can make use of to lessen your expenses. In this article, we list down some of the best tips you can use to save on all your car expenses.
- Keep New Cars Longer
After you buy your new car, you should not trade it every year so you can have more savings. Every year the cost of purchasing a new car increases and the value of the old cars you have always depreciate.
The moment you plan on trading in those cars, you already lose a lot of money. The potential savings you get when you don’t get a new car every year would be about $1000/yr. That’s a huge chunk of money you can spend on other investments.
- Consider Smaller Models
Don’t go for high-consumption cars when you’re buying a new car. There’s a lot of fuel-efficient cars in the market, and you can get better gasoline mileage from these cars than any other luxury models. Plus, if you get these cars, you get cheap car insurance quotes, especially when you pick the small-size models. Doing this would potentially give you around $600 of savings each year.
- Fuel Consumption
It’s also important to pick a car with the best fuel consumption system. You consume more fuel when you’re in stop and go traffic and when you’re using your air conditioner on the road, so you might want to factor that in when you choose the best car for you. Data shows that you can save a bit more when you go for automatic transmissions, and six-cylinder engines will give about five mph less fuel consumption than the four-cylinder ones. Doing this could potentially give you about $400/yr of savings.
- Don’t Buy Car Insurance Through Car Dealers
There’s a wise saying from Nassim Taleb that says that you should never ask a barber if you need a haircut. That said, you should never ask your car dealer for what type of car insurance you need because they will positively charge you more. They have more incentive to get more money out of you. The car insurance quotes you get will be folded up into your car loan, and that gets you to pay around 500% more of the original value of your car. Just stick with the current personal insurance that you get from your employer or individual life insurance account.
- Ignore Extended Contracts
You may be tempted to get an extended car insurance should you decide to ensure your car. Expert opinion suggests that you can save a lot by just ignoring the extended warranty offered by the seller because they’re most likely going to give you inferior support and coverage. Look for the best car insurance policy from your trusted authorities, such as your friends and family. Doing this would save you more than $1000, which is a pretty significant amount of money for car savings.
- Tune Your Car Regularly
The best way to avoid the significant costs that come with car maintenance is to keep up on your regular maintenance. A poorly optimized car would cost you about 25% more gas each year, and that’s a lot of money going down the drain. You also save more when you pay for a tune-up instead of a complete car repair.
There’s a lot of ways to save money on your car. Hopefully, the tips we listed above could help you not only pick the best car for you, but also enlighten you with the best tips for saving money on your car expenses.