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Hidden Costs of Car Ownership, 10 Ways to Save Money

Written By Sabah Karimi

Even when you've picked out the most fuel-efficient car from the dealer, or have settled for a car with low insurance rates, there are still many costs associated with buying and owning a car. Not only do you become responsible for car maintenance costs, repairs and petrol costs, but you'll also have to deal with rising insurance costs, depreciation and any interest on your loan if you chose to finance the purchase.

 

Factoring in these hidden costs to your bottom line price can help you make a better decision for your car purchase, but there are some ways to save money so you don't end up paying a premium price for that bargain. Here are 10 simple ways to save those pounds and enjoy your new car with peace of mind:

 

1. Cut down on your car use. Join the eco-friendly folks among us and save on petrol costs and wear and tear on your car by cutting back on car use. If you can, carpool with your mates to work or other venues so you're not paying extra for basic transportation. You can skip using the car altogether by walking, taking the train or bus, or even riding your bike.

 

2. Beware of 'monthly payment' policies from the insurer. Many insurance companies who offer monthly payment plans will charge you ridiculously high interest rates after a special offer period. Read the fine print and make sure you're not paying high interest on something that you can afford anyway - look for insurers who give you flexible payment plans over the course of a year rather than monthly.

 

3. Buy a small or compact car if possible. Smaller cars use less fuel and typically get better mileage. The lighter the car, the easier it will be to save on petrol costs and maximize each trip; keep this in mind if you are purchasing a new or used car so you make a sensible purchase and save money from the start.

 

4. Shop around for insurance. It's easier than ever to find reasonable car insurance rates by searching online and asking for quotes. There are also many insurance comparison sites available where you can analyze all the details from the comforts of home - and without the pressure of an insurances salesperson.

 

5. Look for pay-as-you-go insurance plans. Norwich Union's Pay-as-you-drive scheme is a great choice for anyone who wants cheap car insurance because they don't drive very often. If you drive less than 6,000 miles per year, this plan is much cheaper than standard insurers' policies.

 

6. Keep your eyes peeled for cashback offers for insurance. The Post Office is just one place most people forget to check when buying insurance, but you can get money back on your purchase with some of their special offers. Shop around to find the best deal and easily carve off a few pounds from your insurance costs.

 

7. Find a trustworthy mechanic in your area. Look for a reliable mechanic in your area that can offer you a fair and reasonable quote for all your repairs. Establishing a relationship with your mechanic can make it easier to get your car repaired without paying hidden fees that other mechanics might charge.

 

8. Save money on parking. If you're traveling to the airport you can save as much as 25 percent off parking costs at the car park by booking early. Find out where to obtain parking passes and take advantage of hotel and parking packages to save even more when you travel.

 

9. Get regular checkups. For your car, that is. Keeping your car in good shape means less maintenance costs in the long-term so you can save money by planning ahead. Get seasonal tune-ups from the mechanic, and make sure the oil gets changed on a regular basis as well.

 

10. Skip the air conditioner. Air conditioning can guzzle up almost 20 percent of your gas costs, so avoid using the air conditioner whenever possible.

 

Even with the hidden costs of car ownership, there are plenty of ways to save money and make the most of your investment. Keep these 10 tips in mind as you purchase your car and insurance so you can enjoy your car and stay within your financial budget.

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