The annual cost of owning a car ranges from $7,000 to about $10,5000, depending on the category of the vehicle. A small, sedan will be cost a small amount of money to run while a large SUV or pickup truck will cost a lot more.
Car ownership is a great thing. The freedom and convenience a car offers is unapparelled. However, cars cost money not only to buy but also to keep on the road. That being said, the cost of car ownership shouldn’t be giving you sleepless nights. If you’re feeling the pinch of running your car, there are steps you can take to reduce the car ownership cost.
You’ve come to the right place if you’re looking for ways to spend less on your car. Read on for helpful tips and advice!
Buy a Car That Doesn’t Cost a Fortune to Run
One of the most high-impact steps you can take to reduce the cost of car ownership is buying a car that’s friendly to your finances. If you buy a fuel-guzzling vehicle, for instance, don’t expect it to be easy on your pocket at the gas station. You should have known what you were getting into.
If you buy a performance luxury car, expect to dish out thousands of dollars at the repair shop when something goes wrong – and something will indeed go wrong.
Buying a car that doesn’t cost a lot of money to run sets you up for success when you want to bring the cost even lower.
The big question is: how do you buy a car that’s cheap to run?
Easy! Do plenty of research when you’re shopping for a car. Don’t just focus on the purchase price. Factor in costs such as insurance, maintenance and repairs, gas or electricity, and warranties (if it’s a used car). There’s plenty of information online about the cost of running various cars, so ensure you have an idea of what the car you’re looking to buy will cost you to run.
What if you already bought a car and don’t like how it’s treating your finances? You can sell it and buy a more economical one. If you aren’t quite ready to sell, the following tips will come in handy.
Get the Best Deal on Insurance
Auto insurance is one of the biggest car ownership expenses. It’s also a must-have, so you have no choice but to buy it. As such, finding ways to reduce your auto insurance expense will go a long way in reducing your overall cost of car ownership.
A mistake most first-time car owners make is settling for the first insurance company they come across. Don’t make such a mistake.
Sure, the first insurance company you approach can as well turn out to be the best deal, but unless you shop around and compare quotes, you’ll never know.
If you’ve owned a car for more than a year, avoid switching insurance companies when it’s time to renew, unless you’re getting a better deal elsewhere. Your current auto insurer might be open to lowering your rates, especially if you’ve kept a clean driving record and never filed a claim.
Keep in mind that the value of your car has a direct impact on the cost of insurance. The more expensive a car is, the more it’ll cost to insure. So, if you’re getting ready to buy a car, don’t go for an expensive car if the cost of ownership is a point of bother.
There are two places a big chunk of your annual vehicle ownership cost will go to: gas stations and auto repair shops.
You can substantially minimize the amount of money you spend in these places by being a diligent driver. Diligent driving is all about being mindful of your car when you’re behind the wheel.
Bad driving hits, such as excessive braking and acceleration, will not only increase your car’s fuel consumption, but also the wear and tear of the brakes, gearbox, engine, and other crucial parts. Replacing car parts, especially a gearbox or engine, isn’t cheap.
Driving diligently also means being defensive on the road. If you’re always getting into fender benders and other kinds of road accidents, the cost of getting your car back into shape will add up. Even if your insurance provider may take care of such repairs, don’t be surprised when the insurer slaps you with higher insurance premiums.
Get Paint Protection
For many car owners, paint protection is an unnecessarily expensive after-care service. But for a savvy car owner who wants to reduce car ownership costs, paint protection is worth it.
Auto paint protection films are transparent films installed over your car’s body. Besides being hardly visible to the naked eye, the best car paint protection film protects your car’s body from rocks and pebbles, winter salt and sand, and road debris.
How do these benefits translate to reduced ownership costs? Trips to an auto body repair shop will reduce. Even a small dent on your car’s body can require the entire panel or even the entire car to be repainted. Avoiding paint jobs is no doubt a major cost-saver.
Get a Warranty on a Used Car
When you buy a new car, you get a factory warranty that lasts for a specified amount of time or mileage. If your car develops a problem, the manufacturer will repair it without any cost to you.
When you’re buying a used car that’s already out of factory warranty, you’ll be responsible for repairs that are typically covered in a warranty. The good news is you can purchase dealership or auto garage warranties for a used vehicle.
A used car warranty will set you back about $500 on average but will save you a ton of money should your car develop costly gearbox or engine problems.
Throttle Down Your Cost of Car Ownership
Cars are a joy to drive, but the ownership experience can be painful if your car has high running costs. Don’t let that happen to you. With these tips, you now know the steps you can take to reduce your cost of car ownership.
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