Last Updated on February 1, 2024 by John Robinson
Owning a car is never cheap as there are always expenses to be met, from insurance and gas to routine maintenance. Nevertheless, it is possible to lower your monthly car costs and put money back in your pocket. Here are five ways to lower your car expenses
1. Find affordable parking spots
The cost of parking spots in most cities across the United States is getting higher by the day, making this a daily expense you cannot afford to ignore. It is equally becoming more difficult to find a decent parking spot in most urban centers, a crisis that further makes it more expensive to use your car. An efficient way to avoid wasting your time or money is to use WhereiPark, an online marketplace for monthly parking, to find secure and affordable parking options near you.
2. Reduce your insurance costs
While auto insurance is a legal requirement in most states and always comes in handy after an accident, your premiums do not have to dent your pockets. You can reduce your insurance costs by:
- Taking a defensive driving course, which qualifies you for premium deductions
- Increasing your deductibles
- Shopping around for a cheaper insurance
- Taking advantage of multi-car discounts
- Reviewing and negotiating your car policy based on your current needs and past performance, such as a good driving record
3. Conduct timely and regular maintenance
One of the best ways to lower car expenses is by adhering to manufacturer-recommended car maintenance routines. This will help keep your car in top condition for many years while reducing the chances of sudden breakdowns and expensive repairs.
4. Refinance your car loan
Has your credit score increased since you bought your car, or do you believe the dealership did not give you a fair loan? You can opt for refinancing by finding a new lender who can pay off your current loan with a new one but at a lower interest rate. This can help you save hundreds of dollars over the course of the loan while reducing your monthly financial burden.
Before switching to a different lender, it is critical to inquire if there will be any penalties for early payments and determine if the new interest rates suit your long-term financial plan.
5. Downsize to a cheaper car
You can slash up to 50% of your monthly car expenses by downsizing to a cheaper car. The fastest way to make that switch is by trading in that top-of-the-line model or large SUV for a slightly used car that can serve your needs without straining your finances.
For first-time car buyers, it is cheaper to buy a used car, as the average car can lose up to 30% of its value after one year of use. This means knocking a couple of grands off your buying price and reducing the burden of paying off that car loan.
Car ownership must never be an excuse to break the bank when you can lower your expenses and still have the convenience of moving from one location to another with ease.