21 Easy Ways I Save Money On My Car
Owning a car is a major convenience, but it comes with its fair share of expenses -hello flat tires. On the birght side, there are numerous ways to keep these costs in check without sacrificing the health and efficiency of your vehicle. Here are 21 things you can do today to save money on your car.
Always Get a Vehicle History Report
If you’re looking at a used car, make sure to get a vehicle history report. This report from services like Carfax tells you everything you need to know about the car’s past.
It covers details like any big accidents it’s been in, if there are any recalls, its service history, and how many people have owned it before. This is your best tool to keep from buying a car with hidden problems and can save you a lot of trouble (and money) down the road.
Only Choose Reliable Vehicles
Choosing a reliable car is huge for saving on repair costs. Websites like RepairPal rate cars based on how often they need repairs and how much those repairs typically cost. J.D. Power also gives awards to the most dependable models and brands.
A dependable car means fewer repair bills, which can save you hundreds every year and even more over the life of the car.
Focus on Fuel Economy
Cutting down on gas expenses is crucial for saving money. If you drive a car that gets 30 miles per gallon (mpg) instead of 20 mpg, you could save up to $908 each year, assuming you drive 15,000 miles and gas costs $3.63 per gallon. Over five years, this is around $4,500 that you could save.
Get Preapproved
Before you even step into a dealership, get preapproved for a car loan. This puts you in a stronger position, giving you the upper hand in negotiations. Dealers often earn more from financing, which they set up through their own departments or with banks.
By having preapproval, you limit the dealer’s ability to dictate the financing terms, which can save you big money and give you better control over the purchase process.
Refinance Through a Credit Union
Refinancing your car loan through a credit union can be a smart financial move. Credit unions often offer lower interest rates compared to traditional banks, which can reduce your monthly payments.
This is especially beneficial if your current car loan has a high annual percentage rate. By refinancing, you can lower the overall cost of your car over time.
Understand Your Car Warranty
It’s really important to understand your car’s warranty. Think of it as a promise from the car maker about what they’ll fix if something goes wrong. But be careful! Certain things like using the wrong oil or adding custom parts might cancel this promise.
Keep in mind that the warranty won’t cover everything, like damage from a flood or taking a regular car off-roading. Always keep your repair receipts safe -you might need them to show that you’ve kept up your end of the deal.
Master Basic Car Maintenance
It’s a good idea to get to know your car’s owner’s manual and understand the basics of how your car works. You don’t need to be a mechanic, but knowing how to check your oil can be a big money-saver.
Learn how to do simple checks and maintenance like adjusting air pressure, topping up fluids, inspecting your battery, and replacing air filters and spark plugs.
Aim for a Larger Down Payment
If you’re buying a new car, aim to save up for a larger down payment. The usual advice is to put down 20% of the car’s price, but many people only manage about 12%.
A bigger down payment means you’ll borrow less and pay less interest over time, possibly even securing a better loan rate because the lender sees it as a safer bet.
Plus, a larger initial payment helps offset your car’s depreciation—cars typically lose about a third of their value in the first year, so a small down payment could leave you owing more than the car is worth.
Look Beyond Monthly Payments
When you’re out car shopping, it’s tempting to just look at the monthly payment and think you’re getting a great deal. But there’s more to it than that. Instead of hunting for the lowest monthly payment, focus on finding the best overall loan.
Sometimes, a loan that stretches out for a longer period might have smaller monthly payments, but it will cost you a lot more by the end.
Compare Insurance Early
Before you pick your next car, start with shopping for insurance. The type of car, features, and even color can make a big difference in how much you’ll pay for insurance.
Use resources like Insure.com to compare what it might cost you to insure different cars. Picking a car with affordable insurance rates can save you a lot of money in the long run.
Review Your Insurance Options Often
Once you’ve bought your car, don’t just stick with the same insurance forever. Make it a habit to shop around for better rates every few months, or at least every time your policy is up for renewal.
The insurance market is always changing—new companies might come up, and old ones might change their pricing strategies. By checking regularly, you could find a better deal that saves you money on car insurance.
Save with Insurance Bundles
If you have other things to insure like a home or a boat, see if you can save money by bundling those with your car insurance. Many insurers offer discounts when you group multiple policies together.
If your current provider doesn’t give a good discount, take some time to compare offers from other companies. Sometimes, adding your car to an existing bundle can unlock savings that weren’t available when you first signed up.
Compare Leasing and Buying
Trying to decide whether to lease or buy a car? Here’s the scoop: Leasing can give you lower monthly payments because you’re only covering the car’s drop in value, plus some extra costs.
But, you never end up owning the car, and you’ll always have a car payment.
On the other hand, buying a car means higher payments at first, but eventually, you’ll own it and the payments stop.
Minimize Your Lease Down Payment
Leasing a car? Here’s a tip: put down as little money upfront as you can. In leasing, a big down payment doesn’t lower your overall costs like it does when you buy a car.
All the lease’s costs, including taxes and fees, are set no matter how much you pay upfront. So, it’s smart to just cover the initial fees and save your cash for other expenses.
Clean Your Car Regularly
Keeping your car clean can actually save you money. Dirt and grime can wear down your car’s exterior, leading to rust, especially on the undercarriage.
This kind of damage can be costly to repair and can significantly lower your car’s resale value. Regular washes help protect the paint and clear coating, keeping rust at bay and maintaining your car’s value.
Keeping a clean interior also helps to retain more of your car’s resale value. No one wants to buy a stinky car!
Schedule Regular Oil Changes
One of the best things you can do for your car is to change the oil regularly. Check your owner’s manual for the recommended interval between oil changes and stick to it.
Old oil can turn into a sticky residue that causes friction in your engine, leading to overheating and serious damage. Regular oil changes keep your engine running smoothly, prevent expensive repairs, and help maintain your car’s value.
Stick to a Maintenance Schedule
It’s smart to keep up with your car’s maintenance schedule. Think of your car like a team player who needs regular check-ups to stay in the game.
Most cars need certain parts checked or replaced every 30,000, 60,000, and 90,000 miles—things like tires, windshield wipers, and even brake pads.
Keeping on top of these appointments can cost a bit upfront, but it helps prevent major repairs later. Think of it as small investments that keep big bills away.
Pay Attention to Weird Car Noises
Hear something odd coming from your car? Don’t just turn up the radio and ignore it. Those weird noises, like knocks, rattles, or squeals, are your car’s way of saying something is wrong.
Ignoring them could turn a small fix into a big, expensive problem. It’s best to get any strange sounds checked out right away to keep your car in good shape.
Refuel Before Running Low
Try not to let your gas tank get too low. The fuel in your tank helps keep the fuel pump— which sends gas to your engine—cool and lubricated.
Running on empty too often can overheat and wear out the pump. A good rule of thumb is to fill up when your tank is about a quarter full.
Keep Driving After Your Loan Ends
Once you’ve made that final car payment, enjoy the freedom of not having a car payment—even if your car isn’t your dream vehicle anymore. It’s smart to keep driving it as long as it doesn’t cost more to maintain than it’s worth.
The most cost-effective car is one that’s still running well and doesn’t have any payments left on it. So, hold onto your fully paid-off car and get the most out of your investment!
Save for Your Next Car Early
When your car loan is finally paid off, it’s a great time to start setting money aside for your next vehicle. Even though it’s tempting to enjoy not having monthly car payments, remember that you will need another car someday. Start saving a portion of what you used to pay on your car loan to fund your next down payment.
Also, it’s always a good idea to put some money aside for repairs, especially if your car is out of warranty. This way, you’ll be ready for both maintenance and the eventual purchase of a new car.
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Abbie Clark
