Without a doubt, a car is one of the most expensive purchases you will make in your life. However, you couldn’t be more wrong if you assumed that the only expensive aspect of owning a car is buying it. AAA’s 2021 “Costs to Drive” study shows the average annual cost of owning a new car is a whopping number. $9,666. Fortunately, there are several things you can do to lower your annual car ownership costs. If you want to learn more about how to reduce the cost of car ownership, check out the points below.
Many experts agree that depreciation is one of the highest auto ownership costs. Indeed, new cars lose about 25% of their value as soon as they leave the dealership. Additionally, new cars can lose up to half of their original value after five years. As such, it is reasonable to buy a used car instead of a new one. You can often buy a driveable used car upfront very cheaply without paying monthly, even though it will cost you a lot of money to maintain. On the other hand, a new car has high financial cost but lower maintenance cost. However, owning and maintaining a used car for 5 years is still cheaper than a new car.
- Review or change your insurance
It may be years since you reviewed your car insurance policy. However, it is important to note that the changing nature of insurers and risk appetite means that some providers will offer different rates at different times. Indeed, the insurance market is increasingly competitive and many providers are hungry for customers. Therefore, shopping around for a new premium at least every two years can save you money on premiums. Also, you should review your policy from time to time because chances are you’re driving less than you used to. As a result, you may be eligible for a low mileage discount or a pay-per-mile insurance policy. The main question on the minds of those considering this policy is, “How does pay-per-mile insurance work?? This type of insurance depends on how often you drive to determine your premium. You’ll pay a flat base interest monthly that is determined by factors such as your gender, vehicle model, and age. This base rate will be billed in conjunction with the monthly mileage rate, which is subject to change.
- Stay up to date with preventive maintenance
Preventive maintenance can identify problems with your car before they deteriorate and cause more costly and severe damage. Therefore, never skip preventive maintenance sessions as you could end up spending more money on emergency repairs if your vehicle suddenly breaks down. You can follow a strict preventive maintenance schedule by consulting your car manufacturer’s manual instead of guessing how often you should have your car serviced. In addition, most cars have indicator lights to alert you when specific maintenance tasks such as an oil change or engine check are due. Therefore, familiarize yourself with these indicators and take your vehicle to a trusted mechanic immediately after you receive these warnings. A 2019 Ally survey found that Americans spent about $1,986 on car maintenance and repair. Thus, you can learn how to handle basic maintenance tasks like changing the air filter and changing the oil to save even more money. For example, an oil change can cost up to $100, but it could cost you as little as $25 if you do it yourself.
- Buy OEM parts and accessories
Original equipment manufacturer (OEM) parts are a great alternative to genuine parts worth considering for your vehicle. As the name implies, these parts are made by the same manufacturer that made the original product for your car. Therefore, OEM parts are the same parts as your car in terms of performance, only they lack the original logo and engraving. You can buy these parts for significantly less than their expensive genuine parts. However, it is essential that you do your homework and find a reputable OEM parts seller instead of buying from anyone.
- Reduced size to a cheaper car
That is cautious for reduce your car size to reduce the cost of ownership. This fact is because smaller cars are used cheaper due to lower road taxes, insurance premiums and maintenance costs. Smaller cars are also more fuel efficient, so you’ll spend less on gas with them than with top-of-the-range models. Furthermore, smaller and cheaper cars are less expensive to repair, and spare parts are cheaper and easier to find. These vehicles also deserve attention because they are easier to drive and more environmentally friendly.
