With inflation hitting gas and car costs, expenses are high these days and budgets are strained. If you want to reduce how much you’re paying monthly related to your car, you could:
Refinance your auto loan
Lower your car insurance
Plan ahead to use less gas
Learn how to do routine car maintenance
Carpool more often
Downsize to a less expensive vehicle
Pay attention to gas prices and buy strategically
Skip the car wash and learn to detail your car yourself
Read on for a more detailed look at each of these options and how to put these tips to work to start saving money today.
From car payments to insurance to gas to maintenance, it can feel like the bills never stop. But there are a few simple actions you can take to cut costs here and there and make owning a car less expensive.
Refinancing your car loan is one of the easiest and most effective ways to save money on your car. When you refinance your loan, you replace your existing loan with a new car loan, ideally one that has better terms and conditions. Refinancing to a lower car loan APR can save you hundreds, if not thousands, every year.
You have paid off some debt or increased your income, improving your debt-to-income ratio
Your credit score has increased since you got your initial financing
The market rates have decreased since you financed your car
You got your financing through a dealership and are paying a marked up rate
Refinancing your car loan also allows you to change your repayment period. This means that you can pay your principal off over a longer period of time. While you will end up paying more over the life of your loan, you can cut your monthly payments drastically, which may be a good trade off for you if money’s tight.
You are probably eligible for a lower insurance premium. In fact, you should compare insurance rates every year when it is time for renewal. There are a lot of insurance companies with competitive rates that offer discounts for different things. Researching some different companies can help you determine where you might find the best rates. There’s no harm in getting several quotes to see if it's worth the switch.
You can also review your current policy to see if you need all of the coverage that you have. Minimum insurance coverage requirements vary from state to state, so you will need to check your state’s laws to determine what you need. However, reducing unnecessary coverage is a great way to save money with very little hassle.
You can also ask your insurance company if there are other steps you can take to reduce your premium, such as taking a defensive driving class or participating in a usage-based insurance program. These programs monitor your actual driving and can offer discounts based on how safe of a driver you are.
A great way to cut down on gas costs is to avoid driving as much as possible. One way to do this is to lump all of your errands together when you can. Instead of running out for groceries one day, to the dry cleaners the next day, and to the mall on the third day, simply devote one day to running around. You will save yourself many miles in backtracking, which will cut down on gas as well as wear and tear. And it’s better for the environment, as an added bonus!
Putting air in your tires, changing your oil, and swapping out spark plugs and headlights are easy maintenance tasks that can save you a good deal of money if you learn how to DIY them.
Watching YouTube or having a friend show your ropes can make these tasks incredibly easy, and maybe even enjoyable. If you do not feel comfortable or safe doing them, at least shop around for a mechanic that is reasonable. Avoid going to the dealership for routine maintenance at all costs, unless the cost is covered by your warranty. Dealerships are notoriously expensive for things like oil changes, so a neighborhood mechanic is typically a much better bet.
Carpooling with a friend or loved one is a great way for both of you to cut down on costs. If you are both going to work or to the gym, why not just go together? Splitting the cost of travel will make it more affordable, plus you can get some quality time together.
Times and circumstances change our lives, and sometimes a car that was once practical is no longer a good option. If you have a car that is too expensive, too big, or too expensive to repair, you can always downsize to a more economical car.
If you want to make the switch quickly, sites like Carvana can help you trade in with very little hassle. If you have the time to sell your car privately, you will most likely make a bit more money, but it will take more legwork on your end.
Gone are the days when you needed to settle for the gas station down the street. Not only do most towns have a variety of gas stations to choose from, but there are many apps that will do the research of comparing gas prices for you. After all, it’s pretty unproductive to drive around wasting gas to compare prices. Apps like Waze, GasBuddy, and Gas Gurus can all help you find the best deal in town.
Car washes are convenient, but the costs can add up quickly. Instead, get the hose and bucket out and wash your car by hand. Handwashing is also much better for your car's paint job, as the automatic car washes use more abrasive chemicals and mechanical brushes which can cause the paint to deteriorate.
While you are at it, be sure to wax your car every few months to protect the paint and prevent rusting. The cost of getting your car repainted in the future will far outweigh the investment of car wax and some elbow grease.
Owning a car is expensive. And while you can’t control the price of gas or the cost of a new car, there are ways to keep your costs under control. Changing driving habits and being proactive when it comes to your insurance policy and car loan can result in some big savings.
If refinancing your car loan sounds like a good option for you, Auto Approve is here to help! We specialize in car loan refinancing and can help you through the process. From determining if you are eligible to signing on the dotted line, we will be by your side the whole time to help you save money today.
So don’t wait any longer, get your free, no-commitment quote in 60 seconds!
