5 Ways To Cut Your Car Costs Today
A car is one of the most expensive items you will ever own, only behind your home in most cases. Luckily, there are several ways to trim your auto costs, and cutting down on this expense can free up far more of your budget than getting rid of smaller ones like a daily coffee habit.
Tackling the largest items in your budget is the best way to save money, and these five tactics can give you instant savings.
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1. Get a More Affordable Auto Insurance Policy
Every driver needs an auto insurance policy, but you don’t have to stick with the same insurer. Shopping around and comparing rates can help you secure a policy with a lower premium.
You can also review your current coverage and see if you have too much or if it's just right. Reducing your coverage to the minimum will reduce how much you pay in monthly premiums.
2. Do All of Your Errands on One Day
Grocery shopping, bank visits and pharmacy trips all add up. Instead of tackling one errand per day, you should try to do them all in one drive. Doing so will save you on gas and time.
As a bonus, drive at or under the speed limit when doing these errands. It’s not just because it’s the law, but driving slower will also help you maintain better fuel economy and preserve your tank of gas.
3. Downsize Your Car
Getting a less expensive model and opting for a used car are two ways to instantly bring down your costs. Selling a new vehicle will result in immediate cash value, and you get to keep the difference between the selling price and what you pay for your downsized vehicle.
Not only will you get extra cash, but you also end up with lower maintenance and insurance costs, since an older model is less expensive than a new luxury brand.
4. Refinance Your Loan
Refinancing your auto loan can be a viable way to reduce your monthly expenses, depending on how much your FICO score has improved. If you made on-time payments throughout your loan and previously got your loan with decent credit, you may end up with a lower rate if you refinance.
While you can also add more years to the backend of your loan to reduce monthly payments, that comes with a long-term cost. The further you kick back a loan, the more you will pay in interest over the loan’s lifetime.
5. Follow the Maintenance Schedule
Getting routine maintenance for your vehicle every few months on a regular schedule will cost money. These regular check-ins prevent big expenses in the future, such as an engine replacement. If the damages are significant, you actually save money getting a new car rather than repairing the part, showing how costly it is to skip maintenance.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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