Nine No-Fail Money-Saving Tips for Car Owners
Owning a car comes with financial responsibility, but it doesn’t have to mean you must say goodbye to your budget or your savings. These nine practical money-saving tips can help car owners stick to their budget and save money even after buying a car.
- Save for car repairs. Don’t let unexpected car repairs or maintenance catch you off guard. Designate some money every month specifically for car repairs. That way, if you do need to get your car fixed, you’ll have cash available.
- Make a car payment — even if you don’t need to. Assume you have a car payment even if you don’t have one. This way, even if your car is paid off, you can save money for expensive emergencies, a future car payment, or a down payment for your next new car. No matter how you eventually spend the money, at the end of the year you’ll most likely have at least a few thousand dollars saved.
- Refinance your car loan. Consider refinancing your auto loan to find the payment options that make sense for your situation. While your monthly payments may be a bit higher, the money you’ll save in interest will more than make up for it over the long run.
- Pay off your loan faster. Whether you pay more than your required monthly payment or make extra payments, you’ll be saving a lot of money on interest. However, be sure to check the terms of your loan to ensure there are no fees for paying it off early.
- Pay your bill one month in advance. Should you ever run into a tight month financially, you’ll be happy that you decided to pay your bill early. This way, you avoid having to deal with fees for missed or late payments.
- Lower your car insurance deductible. A lower deductible often means higher monthly payments, but this could be a good incentive to fix your car if it ever needs it. And that will increase the resale value of your vehicle should you ever want to sell it without paying a large out-of-pocket fee for repairs.
- Protect the interior. If you use seat and floor protectors to decrease the wear and tear of your car’s interior, this will help increase your vehicle’s resale value when you go to sell. This inexpensive investment can garner high returns if done before kids make messes and muddy shoes ruin the floors of your car.
- Pay your car insurance all at once. Instead of paying monthly, consider making a bi-annual insurance payment. This will save money on monthly installment and processing fees and can often be cheaper than paying each month.
- Shop around for competitive rates. Not all car insurance companies are created equal, so always do your research and request a few different car insurance quotes before making your final decision. You’re more likely to find the attractive rate you want and the flexible features you need, which will save you money.
These are just some of the many practical ways to save money despite the added financial responsibility of owning a car. Even after you buy a car, you can save money on more than just your car loan with these nine no-fail money-saving tips.