How to Save Money on Your Car - Slimmer Payments

How to Save Money on Your Car

When you need to save money, you want to take a look at the money you spend on your car. Depending on your choice of car or SUV, you could be spending money unnecessarily. When things get tight economically, there are several things you can do to spend less on your getting around.

Car Payments

If you have a sporty car, it is costing you extra money each month. The payments are going to be extra high – and so will almost everything else. That includes your insurance, gas, maintenance, and repairs. If your type of car is stolen often, you will pay even more money for insurance. To save money on your car each month, trade it for a more economical model.

When you buy a vehicle, you will save even more money if you pay for it in cash. Comparing prices between dealerships will help you find the best deal in your neighborhood. Buying a used car will mean that you are not going to suffer depreciation as soon as you drive it off the lot.

Car Insurance

Another big monthly expenditure is car insurance. You can reduce it by getting discounts from your car insurance company. After making sure you are getting your discounts, if you need to lower your premiums even more, you can raise your deductible, lower your coverage (be sure to get the minimum required amount), or change insurance companies.

Save on Gas

You can save on gas by looking for more economical gas prices in your area. Websites such as GasBuddy will help you with this. You will use less gas if you avoid accelerating rapidly, speeding, and hard braking. When you are parked, turn your engine off instead of letting it idle. You can also avoid having to warm your car up in the colder months – just start driving it and it will warm up faster.

Keeping your tires properly inflated will also help you save money on gas. When tires are often underinflated, it will cause your tires to wear out faster – which you do not need when you want to save money.

Use Cash Back Credit Card

Credit cards that offer cashback as rewards will help you save money when you buy gas. Credit cards will give you different percentages as rewards when you buy gas, so look for one that will give you at least one percent (preferably more) back. If it also gives you rewards for other purchases, such as groceries, it will help. Remember that you will lose the value of rewards if you keep a balance on the card – which leads to a lot of interest.

Get a Good Credit Score

Your credit score may be affecting your car insurance costs more than you think. Consumer Reports says that if you have only good credit now, you could save more than $500 per year in some states if you raise your credit score to excellent.

Keep Teens Off Your Insurance Longer

You can expect your car insurance to be raised as much as 80 percent when you add a 16-year old to your insurance policy. If you wait until they are 19, it will only be raised by about 60 percent. If they make good grades, you can get a discount of as much as 20 percent.

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