For many of us a car is an absolute necessity. Without our trusty old car we can’t get to and from our jobs, we can’t pick the kids up after school and get them to soccer practice or the dance recital on time, and we simply can’t take care of the day to day errands that demand so much of our time. But owning a car is a major investment, and the total cost of a car goes far beyond the price at the dealership. Let’s look at a few simple tips that will help you save money on your car expenses, from the initial purchase and throughout the life of your vehicle.
Saving Money on a New Car Purchase
When shopping for a new car, consider a smaller and more fuel efficient model. Compact cars typically carry lower price tags than larger, flashier, models. They also tend to get better gas mileage, saving you money at the pump. Moreover, the cost of insurance on a compact car tends to be cheaper than on trucks and SUVs. By choosing a smaller, more fuel efficient car, you can save between $300 and $600 a year on insurance premiums alone.
Reconsider the Extended Warranty
Most car dealers want to sell you an extended warranty with your new car purchase. This allows them to make a little bit more money on the back end of the sale of the vehicle. Consider these extended warranty offers carefully. Many of them offer very limited coverage, and typically cost more than policies purchased from an independent provider. If you are considering a dealership’s offer of an extended warranty on your new vehicle, make certain it offers real value for money. You may find that the offer really is too good to be true, and you are only wasting your hard earned money.
Maintenance
Your new vehicle will give you better performance, and more years of faithful service, if it is properly maintained. Keep your car properly tuned, and have the oil and filters changed regularly according to the manufacturer’s recommendations. This will reduce the need for costly repairs, and will improve your over all gas mileage. Make sure your tyres are inflated to the recommended PSI. This will help them to last longer, and will give you greater control on the road. Unless your owner’s manual specifically advises otherwise, choose regular instead of premium gasoline. Most modern car engines run perfectly well on regular gas, and derive no real benefit from high octane premium gasoline. Simply switching to regular gasoline can save you as much as $400 a year on fuel costs.
Save Money on Insurance
Car insurance isn’t just a good idea, it’s a necessity. But there are even ways to save money on the cost of your premiums. Check with your insurance provider, and ask about raising your deductible. Raising your deductible by as little as $250 can save you as much as 10% to 15% on your annual premiums. Consider moving all of your insurance needs under one roof, insuring both your home and your car with a single company. Many insurance providers offer multi-policy discounts for valued customers, and this can save you between 5% and 10% over all of your policies.
Buying a car is a major investment, but there are many ways to save money on car expenses over the life of your vehicle. The few suggestions discussed here are merely the tip of the money saving iceberg, and you’re sure to find other ways to save money if you simply put your mind to it.
