Learning to minimize expenses wherever possible is a common trait of young professionals looking to improve their financial situation. One area that a) costs a lot of money but b) is pretty necessary is your car, and although many of us are still working from home, this looks to change later this year and I suspect many of us will be back in the routine of our daily commute before we know it! A car is a large investment for us, and we rely on it heavily in our daily lives. There are of course lots of general maintenance items that help prolong the life of your car and also cut down on costly repairs, but what about more general things that you can be doing – how else can you work to decrease expenses on your vehicle?

1. Save on Gas

To help you save money on your actually keeping your car running (with gas) there are several apps that you can download. GasBuddy is an application that can help you to find the best deals on gas, in the nearby area. The application also tracks your driving habits and gives you ideas on reducing your gas consumption. Another helpful app is the Fuelly application. With the help of this app, you can monitor your fuel economy, and track your vehicle maintenance. When you maintain your vehicle correctly, you’re more likely to make savings over time. Many cars today still run on gas, so you might as well not pay more than you have to!

2. Shop around for car insurance

It’s tempting to just auto-renew your current auto insurance plan, but you might be able to save by switching providers. Check out price comparison sites to compare deals, and research any appropriate discounts. There are several discounts you might qualify for, including low mileage discounts, accident-free discounts, or defensive driver discounts. To be eligible for a defensive driver discount, you’ll need to take a defensive driving course. These courses teach drivers how to anticipate the actions of those around them, for improved safety. It never hurts to shop around and once a year around renewal time is often a great time to do so!

3 . Switch to an EV 

According to a study in Science Daily, ‘Motorists can save as much as $14,500 on fuel costs over 15 years by driving an electric vehicle instead of a similar one fueled by gasoline.’ Besides the financial advantages, there are many other benefits to switching to an electric vehicle including:

• Reducing your carbon footprint.
• Less expensive maintenance costs.
• Less noisy to run, and smooth on the roads.

Research shows that EVS will become increasingly popular in the future. According to Auto Trader, ‘combined sales of alternative fuel vehicle (AFV) – hybrids and EVs – will overtake regular combustion-engined (ICE) models by 2024 and new EVs will outsell ICE by 2025.’ Mrs. Money and I had an electric car a few years ago as part of a crazy good tax incentive offered in our state, and we loved the car! My estimates were that it cost about $20/month total in electricity vs the $80-$100 I was spending on gas!

4. Maintenance checks

An ounce of prevention is worth a pound of a cure! No one really loves paying for oil changes, new tires and brakes, but keeping your vehicle in the best condition is good for both your vehicle and your bank balance. When you fail to maintain your car, you could end up needing costly fixes further down the line. What’s more, keeping your car in great condition also helps you to reduce depreciation. Consider that when you buy a second hand vehicle you won’t experience such a depreciation hit.

Lastly, driving safety will reduce your chances of getting speeding tickets or points on your license. For more serious driving offenses, you may require the help of a criminal defense lawyer.

Summary

A car is a large investment and asset, and by being smart and taking care of it, you can minimize the chances of it becoming a liability and hurting the overall value of the asset. It can be helpful to create a budget for your car expenses or to set savings goals. To support your budgeting, try using apps like ‘Mint’, or ‘You Need A Budget’. With a wide range of features, you can budget for your monthly expenses, and figure out where you can save!

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