How To Reduce The Cost Of Vehicle Ownership

Having a car was never a consideration of mine, since they are so expensive locally. On top of that, I didn't even have a license. Now that I finally do, I am curious about how much having a car would cost, so I'm especially eager to read reader submitted posts such as these.

The cost of ownership and operation of an average sedan in America is $713 per month, or $8,550 per year, according to the American Automobile Association. Some of the costs that come with vehicle ownership include finance charges, fuel, maintenance, depreciation and insurance. Cars have become the second most expensive thing that most Americans own after their homes. However, this has not stopped them from buying cars, with some even owning multiple. Yes, a car can be expensive, but for most Americans, they have become a basic need, especially those who need one to get to their jobs daily. While most of the costs of owning a car are unavoidable, there are various things you can do to keep them on the lower side.

Buy a used car

Used cars are significantly cheaper than new cars. However, there is a stigma attached to buying used vehicles in America, and as a result, not many people are willing to buy them. However, if you look hard enough, you can get crazy deals on used cars that are almost as good as new. However, you must exercise caution when buying a used car to avoid making a huge mistake. First of all, finding out the current fair value for the car you wish to buy is important to ensure that you are getting a good deal. You can also hire a professional mechanic to inspect the vehicle before buying to ensure that it is well maintained and everything is working properly.

Save money on fuel

Fuel is already one of the biggest costs of owning a car, with the average American driver spending about $1,500 per year, and if the fuel prices rise as expected in 2020, it will become even more expensive to drive. To reduce the amount of money you spend on fuel, you can start by buying a car with good fuel economy. It is possible to find a vehicle in your price range that uses 30% less fuel than other similarly priced vehicles. Avoid cars that require premium fuel, and stick to those that use regular fuel. Your driving habits can also affect your fuel consumption. For instance, avoid driving aggressively or speeding, as it can lower your fuel economy.

Follow proper maintenance procedures

Maintenance is important as it keeps your car in great condition and prevents costly breakdowns from happening. You should follow the maintenance procedures outlined in the car's manual to ensure it stays in tip-top condition. However, be careful not to "over-maintain" the car. Avoid unnecessary repairs, and if possible, do some of the repairs and maintenance yourself, such as replacing air filters or rotating tires.

A car is a great and often necessary investment, but if you're not careful, it can end up taking a huge portion of your income every month. Thankfully, you can find many ways to reduce the cost of car ownership through diligent research and careful consideration.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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