A vehicle is without a doubt one of the most costly purchases you’ll make in your life. However, you would be dead wrong if you assumed that the only expensive aspect of owning a car is buying it. The 2021 AAA “Your Driving Cost” study reveals that the average annual cost of owning a new car is astronomical $9,666. Fortunately, there are several things you can do to reduce your annual car ownership costs. If you want to learn more about lowering the price of owning a vehicle, see the points below.
- Buy a used car
Many experts agree that depreciation is among the highest costs of car ownership. Indeed, new cars lose about 25% in value as soon as they leave the dealership. In addition, a new car can lose up to half of its initial value after five years. Thus, it’s reasonable to buy a used car rather than new. You can generally buy a used driveable car up front for very little money with no monthly payments, even though you’ll end up spending a lot on maintenance. On the other hand, new cars have high financing costs but lower maintenance costs. Still, it is a lot cheaper to own and maintain a used car for five years than a new one.
- Review or change your insurance
It’s likely been years since you reviewed your auto insurance policy. However, it’s important to note that the changing nature of insurance and risk appetite means that different providers will offer different rates at different times. Indeed, the insurance market is more and more competitive, and plenty of providers are hungry for clients. Therefore, shopping for new insurance rates at least every two years can help you save money on premiums. Also, it’s advisable to review your policy every now and then as you are less likely to drive than before. As such, you may qualify for a low mileage discount or pay-per-mile insurance policy. The main question in the minds of individuals considering this policy is, “how does pay per mile insurance work?” This type of insurance determines how often you drive to determine your premium. You will pay a basic, unchanged monthly rate that’s determined by factors such as your gender, car model and age. This base rate will be paid in conjunction with the monthly mileage rate, which is subject to change.
- Stay on top of preventive maintenance
Preventive maintenance can identify problems with your car before they get worse and cause more serious, costly damage. Therefore, never skip a preventive maintenance session as you may end up spending extra money on emergency repairs if your vehicle abruptly breaks down. You can follow a strict preventive maintenance schedule after consulting the car manufacturer’s manual rather than guessing about how often you must service your car. Also, most cars have indicators that let you know when certain maintenance tasks such as an oil change or engine check need to be performed. Therefore, familiarize yourself with these indicators and instantly take the vehicle to a trusted mechanic after you get this warning. Ally’s 2019 survey revealed that Americans spend an estimated $1,986 on car maintenance and repair. Because of this, you can learn to handle basic maintenance tasks like changing the air filter and changing the oil to save even extra money. For example, an oil change can cost up to $100, but you can only spend $25 if you do it yourself.
- Purchase OEM parts and accessories
Original equipment manufacturer (OEM) parts are an incredible alternative to genuine parts worth considering for your vehicle. As the name suggests, these parts are made by the same manufacturer that produced the original product for your car. Therefore, OEM parts are the same parts as your car in terms of performance, except that they don’t have the original logos and engravings. You can get these parts at a much cheaper price than expensive genuine parts. Nevertheless, it’s still important to do your homework and find a respectable OEM parts seller rather than buying from anyone.
- Save to a cheaper vehicle
It is wise to shrink your vehicle to lower the price of ownership. This fact is because smaller cars are cheaper to drive as a result of lower road taxes, insurance rates and service fees. Smaller cars are also more fuel efficient, so you will spend less money on gas when you own this vehicle than you would a top-of-the-line model. Plus, smaller, cheaper cars are cheaper to repair, and parts are cheaper and easier to find. This vehicle is also worth considering because it is simpler to drive and more environmentally friendly.
