Saving Money on Vehicle Expenses

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Everyone knows that vehicles are not only a luxury item, but also a huge expense. First there is the cost
of purchasing a car (even used can be pricy) and the interest that necessarily comes with a car loan,
then there are associated expenses like registration, insurance, maintenance, and gas, and finally there
are extra costs like parking, tickets, and accidents to consider (although these last few may or may not
apply). In short, your vehicle could end up being more of a liability than an asset (and of course, it only
stands to depreciate in value, unless you’re restoring a classic car or you’ve got a limited edition Ferrari
or something). But most of us require one of these money pits to function in modern society, so you’ll
be glad to hear that there are definitely ways to spend a little less when it comes to your car.

For starters, you can save on the price of purchase in several ways. If a new car is pretty much out of
the question, think about a certified pre-owned vehicle. Often they are a year or two old, they come
with a full warrantee, and the cost is significantly less than new. And whether you’re buying new
or used, you may have to secure some financing. Your best bet here is to save up for a good down
payment beforehand in order to cut your monthly payments and potentially allow you to pay down
the principal faster (to avoid some interest payments). You could even consider a lease; the monthly
payments will be lower and if you purchase it you’ll be buying at a lower rate (since you’ve already paid
a portion).

You can also save on the associated costs, as well, by purchasing an eco-friendly vehicle, for example.
These cars may be a bit more expensive than their gas-hogging counterparts, but there are ways to
dispel these costs. For one thing, plug-in hybrid and electric vehicles come with federal government
incentives (up to $7,000 for the vehicle and up to $2,000 for charging station installation) and potentially
even additional state incentives (California is the best with up to $5,000). And a green automobile can
save you a ton of dough at the pump so that you quickly make up for any extra you spend initially. You
may also be eligible for a carpool exemption in some states, which could save you time on your daily
commute. These cars offer savings galore!

As for registration, the easy way to save is to buy a less expensive vehicle (since that’s what the cost of
registration is based on). And insurance can come with a ton of savings, as well. The type of car you
own could make a difference (a sports car will cost more to insure than a sedan, for example), as could
the policy. Did you know that most insurance companies offer tons of discounts for qualified drivers?
You’ll have to ask, but you could pay less if you’re a safe driver (no accidents or tickets), the mileage is
low, you bundle policies (home, auto, etc.), safety features have been added (LoJack), and even if you go
paperless (automatic bill pay).

Of course, you can always sell trucks, cars, and motorcycles and opt for mass transit as a way to really
save (and even get a little money back), but for many people this isn’t really a viable option. If you need
a vehicle for work, for example, it wouldn’t work out, although in this case you could save with big rig,
limo, or tow truck financing (depending on your profession). Luckily, there are plenty of ways to save on
your car, so you don’t have to go without.