A lot of people are using cars nowadays. Owning one is one of your largest expenses and it can even be one of the biggest expenses on your budget. Whether it be for going to and from work, to making extra income with it or for leisure purposes, it has become a part of their daily lives. New car models are getting equipped with more advanced technologies than what it used to be. There are self-park features, lane departure warning that can help us stay in our lanes, parking assist helps us to parallel park without bumping into other vehicles and even autonomous emergency braking to apply brakes on the pedal on time.
These new features are supposed to keep us safer. However, in the long run, can it save us money when it comes to auto expenses? There are actually many ways to save on your car expenses. Quite similar to personal finance, the more cost-saving measures you apply now, the more money you will save later on. Although potential savings may differ based on your personal situation, here are a few places where you can save money on your car expenses:
Save Money on a New Car Purchase
Purchasing a new car is one of the largest single transactions a person can make, aside from purchasing a home. Unfortunately, some car deals aren’t made in the best interest of the consumer. So before you buy a new vehicle, learn first what you should and should not do when you purchase a car. Once you learn what these are, here are a few other things you can do to save some money after the purchase:
- Keep your vehicles with you for a longer period of time rather than trading every few years. The cost of cars go up every year and yet it’s the fastest to depreciate quickly. When you always trade-in regularly, you actually lose money on the low trade-in value. Purchase a good quality car and keep it with you at least for five years or more.
- Consider smaller models. If you don’t have plans yet to expand your family, smaller cars are usually cheaper and since they are lighter, they get better gas mileage and insurance is also cheaper.
- Don’t purchase credit life or credit disability insurance through your car dealer. There are dealers who do a hard sell on these coverages but they are extremely overpriced and you end up paying more than you should for the coverage.
Save Money on Your Car Insurance
After the initial purchase, there are other expenses you need to take into consideration. You have the monthly car payments, insurance premiums and gasoline expenses you need to set aside some money for. You will definitely run into some car maintenance expenses, however, some insurance providers are offering their own safety features so that you can save money in the long run. Here are a few ways you can save on your premiums:
- Don’t forget to notify the insurance company of all the safety features that can qualify you for discounts. There are even some cases where non-smokers or non-drinkers get additional discounts.
- Inquire with your insurance agent how much money you can save when you raise the deductible on your auto collision insurance. Most of the time, raising the deductible can save you at least 10% or more in premiums.
The potential for saving money on safety features on your vehicle is doable. Just don’t forget to check out and inquire with your insurance on the most important features you think needs to be included and those that you think you can do without.
Rachel Slifka is a freelance writer and human resources professional. She is passionate about helping fellow millennials find success with their finances and careers. Read more by checking out her website at RachelSlifka.com.