Owning a car can cost you thousands of dollars per year, but we can quickly reduce your expenses by following these simple strategies. Whether you are buying a new car or want to reduce your overall expenses, these tips can make the most out of your money.
Your car’s insurance is necessary, but it is one of those expenses that put a massive dent in your budget. Americans pay a minimum of $900 per year, and it is hard to pay less due to the minimum coverage you need to meet. But there are ways to lower your insurance rates, below are some suggestions.
- Maintain a good credit record. Establishing a good credit history can lower your insurance premiums. Studies have shown insurers trust those with excellent credit history as they are the ones to have fewer claims.
- Install car security equipment. A car equipped with safety features such as anti-theft and tracking lowers your car’s risk of being stolen or vandalized; thus, you’ll have lower comprehensive coverage premiums.
- Combine insurance policies. When you get as many policies as possible under one insurance carrier, you may get reduced rates on different policies.
- Take a defensive driving class. Your insurer may grant you a rate reduction when you show them proof that you have passed the defensive driving class. Completing a defensive driving course may also help remove the points you have on your driver’s license and could lower your rates.
Carpooling is a great idea when it comes to saving money on your car expenses, particularly on gas bills. By sharing the driving to another person, you can save as much as $200 a year on gasoline costs alone. When you share driving to two or more people, it increases your savings even further.
Auto Loan Refinance
Auto loan refinancing is simply paying off your existing car loan and replace it with a new one. Refinancing an auto loan can help you save a lot of money by getting lower interest rates.
Take Advantage of Warranties
New cars are covered with factory-included warranties that will remain in effect for three years or 3,600 miles. It covers repairs to everything in the vehicle except for parts that wear out such as brakes, and tires. It also doesn’t include payments for routine maintenance. Older cars can avail it through extended warranties. You can save a lot of money on repair bills over time if you have an older vehicle and purchased an extended warranty.
Oil Change Coupons
Changing oil and fluids in your car regularly is essential to keep the car running at its best for years to come. It’s doesn’t cost that much to have your oil changed, but little savings can go a long way. Tire and lube stores often put out coupons on a newspaper that can help you save as much as 50% on the cost of an oil change.
Get a New Car
How reliable is your car lately? Are you visiting car repair shops often lately? If so, then it may be time to replace your car. The cost you’ll be saving when your car runs smoothly for years can save you thousands of dollars on repairs.