Owning and operating any vehicle is going to involve a certain set of expenses. However, you can actually influence how much those expenses cost you in the long run. Knowing how your family can save on car expenses in 2022 helps you keep more of your money throughout the year.
Look Into Refinancing Your Vehicle Loan
If you are still making loan payments on your car, then there might be two ways refinancing can help you out with your 2022 expenses:
- Lower Interest Rates: This can only happen if you find refinancing options at current interest rates lower than what your previous loan started with. However, if you can do it, you’ll reduce the overall amount you owe on the remainder of the loan.
- Lower Monthly Payments: A refinance can mean you spread out your remaining monthly payments over a longer period of time. Drivers keep their cars an average of 11 years but only pay on the initial loans for five or six years. A refinance can mean paying over more of those usable years which would mean you pay less each month when the refinance kicks in.
Get Your Insurance Right
Car insurance is there to protect you financially, but you also don’t want to overpay or underpay. If you’re looking for auto insurance in Utah, then consider these tips:
- Ask About Discounts: There are dozens of different discounts that might be available to you that you might not know about unless you ask. Younger drivers might get good student discounts based on their grades in school. Safe drivers of all ages might get discounts because small GPS monitors in their vehicles tell the insurer they are complying with traffic laws.
- Pick the Right Deductible: Higher deductibles mean lower premiums, but you’d also pay more out of pocket if you need to file a claim. If your regular vehicle use puts it at extra risk or danger, you might be better off with a lower deductible. On the other hand, just running errands around town might be better with a higher deductible.
- Know What Kind of Vehicle You Are Insuring: Using a passenger vehicle for work most days of the week might need more coverage than a recreational or secondary vehicle you only use on occasion.
- Have Appropriate Policy Limits: Only having $10,000 of coverage might work if your car is a decade old and not a premium brand. Then again, if you’re driving a high-end sports car, coverage that low could leave you out of tens of thousands of dollars if something happens to your ride.
- Compare Different Companies: Depending on where you live, there might be quite a few insurance carriers available. It’s useful to shop around and compare their prices and benefits to find the best deal.
How well you take care of your car can impact your expenses quite a bit, as pointed out by Experian. Many drivers might try to put off maintenance to save money, but it can actually cost more in the long run if your car breaks down.
- Properly inflated tires increase your gas mileage.
- Engines with regular oil changes and fluids topped off also result in better miles per gallon.
- Some models of cars get better gas mileage when the fuel tank is more than half-full.
- Replacing your spark plugs at regular intervals also helps you save on fuel.
How you spend your money on a regular basis can also impact car savings:
- Manage your money wisely, because your overall credit score can impact your insurance rates.
- Find a mechanic with rewards programs to enjoy more savings with every visit.
- Do some maintenance yourself to avoid labor charges.
- Shop at grocery stores that offer fuel rewards as part of their loyalty program to save even more on gas.
Keep Yourself Motivated
As with any habit, saving money on car expenses will be something you sustain longer if you are positively motivated. Once you start seeing how much your savings are after a few months, begin brainstorming how you could use that money for something fun you can do with those you love.