How To Reduce Your Monthly Vehicle Expenses

How To Reduce Your Monthly Vehicle Expenses

TGR Staff - 08/02/2022

One of the most underestimated things about owning a vehicle is that there are loads of recurring expenses that can end up being more expensive than the car itself. Sure, the initial cost of a car is really high and we even have to take our a loan to afford it. However, it’s considerations like insurance, repairs, maintenance, and breakdowns that can really make our cars more expensive over time.

So in this post, we’re going to be covering some of the most common monthly vehicle expenses and how you can reduce them to make car ownership a lot more affordable.

Buying a cheap car doesn’t mean lower monthly expenses

First, consider that buying a cheap car doesn’t mean that your car ownership is going to be less expensive. Sure, you can buy a car for less if it’s used, but you still need to think about things like insurance premiums and the cost of repairs and maintenance. An older used vehicle is likely going to run into maintenance problems sooner than a new car, meaning you could go a few miles and then suddenly have to replace various parts. This is also going to cost money because you need to perform a service of your vehicle, and some of the parts might be hard to source and expensive because the car is really old.

In other words, don’t underestimate the hidden expenses of a used or cheap car. Unless you can buy a car for an extremely low price from a private seller, you should consider used and new cars to be similar in terms of monthly expenses.

Drive carefully to avoid potential accidents

Learning to drive carefully could help you avoid accidents in the future, resulting in a much cheaper car ownership overall. A good place to start would be to review your driving lessons if possible, and then you could consider taking on a defensive driving course. This can help you identify potential accidents before they happen, helping you stay out of trouble when you’re on the road.

Refinancing can help reduce costs

Car financing is one of the best ways to purchase a vehicle. After all, most people wouldn’t be able to afford a vehicle straight up without taking out a loan. Thankfully, you can finance a vehicle to spread the cost over a longer period of time. Unfortunately, this can mean you pay a lot in interest, especially if you take a finance plan that lasts several years.

Luckily, you can reduce these costs by looking at a car refinance service. This is essentially another financing deal that you get to reduce the amount of interest that you pay. For example, if you are in a better financial position than you were a few years ago, then you might be able to refinance your loan into just a single year, thus reducing the interest payments you have.

How To Reduce Your Monthly Vehicle Expenses

Consider your insurance needs and look for a good policy

You should also consider what your insurance needs are and what kind of car insurance policy you need. Some policies cover different kinds of things like weather-related damage or theft. If you think that you’re good without some of these insurance considerations, then you could drastically reduce your monthly expenses.

Always keep your car in good condition

Lastly, don’t forget that keeping your car in good condition is generally the best way to reduce monthly expenses. This usually means that you’re paying less for certain expenses like repairs, it means your vehicle runs more efficiently which reduces fuel costs, and you can even start changing tires at home to improve fuel economy.

Tips to help you save money every day

While there are plenty of long-term ways to save money on your car, it’s a good idea to think about everyday ways to help you save a bit of money too.

Know where to get the best fuel prices

We all know that fuel prices vary from station to station and city to city. While it’s usually not worth driving a longer distance just for cheaper fuel, it can be worth it if it’s like two stations within walking distance. There are also some cases where buying fuel and then bringing it home can be cheaper as well.

Drive light

A lighter car means better fuel economy. If you’re not using things like bike racks then you might as well take them off to reduce the weight of your car. This can help your vehicle get more mileage out of your fuel and is a good way to reduce costs over time.

Know where to park

Parking can be fairly expensive too, especially if you like going out to eat and hang out with friends. Try to look for places with free parking if possible, or look online for parking maps to see where you can save money.

Wash your own car

Another good way to save money is to start washing your car at home. This can add up over time, especially if you typically get your car dirty due to things like offroading. Washing your car can be extremely simple if you have a large driveway and it’s something you can get the kids involved with as well. It’s cheaper, it’s quicker at times, and you don’t need to drive around to find a place to wash your car.

Stop driving so much

Lastly, you can always just drive less if you think that it can reduce your expenses. Most people underestimate just how much they drive and for very small journeys as well. For example, some people drive a few minutes just to pick up a package or get groceries, when walking or even cycling could be faster because you don’t need to find a parking spot. Driving less is arguably one of the best ways to save money on your car, but it’s more about choosing the right time to drive versus using your car for everything.