We all know that owning a car is expensive, but how much you spend on monthly payments, gas, and repairs varies greatly from person to person. It can depend on what kind of car you buy, how often you use it for commuting purposes, or where your insurance premiums are set.
Fixed Costs: Things You Have To Pay For Regardless Of How Much You Drive
There are several fixed costs to owning a vehicle. While you may be able to reduce these costs by shopping around, it’s unlikely that you will be able to eradicate them for good.
Fixed costs usually include:
- Car payment – How much you pay monthly on your car loan or lease
- Insurance – How much do you pay per month for insurance via car insurance agents?
- Taxes – Any taxes your state requires for car ownership
Flexible Costs: The Money You Spend, Based On How Much You Drive
Flexible costs are those costs that you can reduce by driving less. These include:
- Gas mileage – How many miles you drive and how much gas it takes to get there.
- Commuting Costs – Traveling to work daily can vary greatly depending on where you live.
- Maintenance and repairs – Cost of getting your car fixed.
- Tolls and Parking Fees – The cost of driving on toll roads and parking your car.
Personal transportation costs can vary greatly depending on how often you use it and where you live; this number varies by household size.
Saving Money On Your Vehicle
Although car ownership is expensive, there are plenty of ways to reduce your costs. Car ownership is not only about the car itself but many things that have nothing to do with it the car itself. Rather, it’s the peripherals and the ongoing costs.
The following tips will help you save money on your car as well as make your drive (or drive more) more enjoyable:
Buy An Inexpensive Car
One of the best ways to keep costs down is to buy inexpensive cars. These cars are cheaper and more sturdy than others in the same price range.
Most people not willing to spend a lot on a car will also spend a lot on repairs due to the car’s age or condition, which tends to add up quickly because these cars need regular maintenance.
Avoid Car Payment
For some people, their car payment is the biggest expense. If you can reduce this expense by paying it off faster, you will be able to save money.
This could be accomplished by buying a cheaper car in the first place or by saving up money for a larger down payment which will make your overall finance agreement cheaper and shorter in the long run.
Get A Car Maintenance Schedule
It is important to have regular maintenance done on your car. An annual tune-up will keep your car in good working condition and running smoothly. It will also prevent problems that can cause a breakdown, saving you money in the long run.