Can I Save Money On Gas By Buying A Second Car

In last week's installment of USA TODAY's Taming your budget-busting bills series we looked at ways to cutting the cost of your commute by not using a car. This calendar week we look at ways you can save on the costs of owning and operating a car.

Anyone will tell you Americans beloved their cars, and any American will tell you that love doesn't come up cheap.

"Information technology's non an cheap undertaking to own and operate a vehicle," said Michael Calkins, manager of technical services at AAA.

Cars are the near expensive matter owned by most Americans who don't own their homes and the 2nd-most expensive thing for those who do. And the sales cost is just the beginning. Once yous go your new ride off the lot the bills kick into gear. Fuel, insurance and maintenance add up quickly.

Go started:How to outset taming your upkeep-busting bills

Week i:V steps to cut your expensive cable TV bill

Week two:Shocking electric neb? Free changes tin help you cut costs, save coin

Week three:How a few minor investments tin lower your water beak

Week four:Take a bite out of your nutrient beak: Relieve money on groceries and dining out

Week 5:Five ways to cut the cost of your commute

In 2017, cars price their owners an average of  $8,469 a year ($706 a month, or $23 a twenty-four hour period), according to AAA — ranging from $half dozen,354 for modest sedans to $10,054 for a pickup truck.

Those costs are unavoidable, merely there are a number of steps you can accept to keep them on the low side.

Depreciation

You've probably heard people say a new automobile loses nearly 25% of its value as soon every bit you lot drive it off the lot. Sadly, that's pretty accurate, Calkins said. And it'due south non just new machine owners who feel the pinch.

"A lot of people don't realize that depreciation is the unmarried biggest expense in owning a motorcar," Calkins said. In fact, the average American driver loses twice as much a year in the value of their car as they spend on fuel.

Hither's how yous tin can cut your depreciation costs:

• Purchase a less expensive car. "The less you spend on a car initially, the less depreciation," Calkins said.
• Purchase the type of car you actually need. "People, of class, are complimentary to buy whatever car they want, but does everybody need a iv-door, three-quarter ton pickup truck?" Calkins asks. "Probably non."
• Purchase a one-to two-year-erstwhile auto that is coming off lease, because somebody else has already paid for that initial depreciation where the car loses the nearly value.
• Not every machine depreciates at the same rate. Shop around for a car with a practiced resale value.

Fuel

The average American driver spends well-nigh $ane,500 a year on fuel merely that number varies significantly by vehicle type. At that place are a number of things you can practise to go on your costs downwardly.

• Buy a car with adept fuel economy. "Even within the aforementioned vehicle category in that location can be a xx to thirty% departure, sometimes even more," Calkins said.
• Get a car that uses regular fuel. Some models, especially turbocharged vehicles recommend or require premium fuel, that will cost you more every fourth dimension you make full.
• Slow downwards. On top of saving you money on potential tickets, driving nether the speed limit volition aid you save on gas. The optimal speed varies with different vehicles, but gas mileage generally starts to fall off above fifty mph. Every v mph you drive over 50 mph is like adding another 18 cents to the cost of a gallon of gas, according to the Environmental Protection Agency.
• Don't bulldoze aggressively. Slamming on the gas and the brakes could price you as much as an extra $i a gallon, according to a study from the Department of Energy's Oak Ridge National Laboratory.
• Don't conduct extra weight. An actress 100 pounds tin injure your fuel efficiency past 1%.
• Avoid cargo carriers on the roof of your car and don't leave them on longer than necessary. They can reduce your fuel economic system by every bit much as 25%. Rear-mounted storage options are much more efficient.
• Shop around for the cheapest gas.
• Don't idle. It burns upward fuel and can be hard on the engine.
• Use prowl control on the highway. Maintaining a constant speed tin save gas.
• Use the proper oil. Although a higher viscosity oil may non damage your car, information technology can decrease efficiency by equally much equally 2%, said Brian West,  a fuels and engines research leader at Oak Ridge National Laboratory.
• Accept information technology easy on the ac. It can hurt fuel efficiency by as much as 25%. But "do what you lot need to do to be comfortable," West said. "I wouldn't  advise anybody to drive effectually in a blazing hot car." And once the car has cooled, air conditioning is actually more efficient at higher speeds than driving with the windows down because of the drag that puts on the vehicle.
• Keep your tires properly inflated. Although the fuel savings are small, it's also an important safety precaution.

Insurance

"The car insurance marketplace is very competitive and very volatile," Calkins said. AAA recommends looking into a new insurance program every twelvemonth, because at that place are often cheaper options that could salvage you lot hundreds of dollars a year.

• Bank check for discounts. Many insurance companies offer lower rates for drivers with anti-lock brakes, anti-theft devices, safety driving history, organization affiliations,  safety training.
• Consider switching to a higher deductible. Yous can go a cheaper charge per unit but a higher deductible will mean yous take to pay more than out of pocket if you have to file a claim.
• Make your teen wait. Couples who add a teen to their auto insurance policies meet an average spike in their costs of eighty%. But sixteen-yr-olds cause an average increase of 92%, while nineteen-twelvemonth-olds increment policies by an average of threescore%, then the longer you await to paw them the keys, the more you relieve. Too check for discounts for students with expert grades.

Maintenance

Follow the car's manual and don't "over-maintain" information technology, is the advice from AAA. "Don't change your oil every 3,000 miles because your dad did," Calkins said. "Modernistic cars don't require that. It's typically $7,500 miles, requite or have, depending on the auto and how you drive information technology."

• If your machine has an indicator that tells you when to change your oil, follow it. "Trust those indicators, they're designed by the engineers who built the cars and they know what's necessary," Calkins said.
• Avoid unnecessary repairs.
• Do simple maintenance and repairs yourself, such equally rotating tires and replacing air filters.

Financing

As with insurance, shopping around tin save you a lot of money. And make sure to await at options outside of the auto dealer's financing. Sometimes the manufacturer might offer the everyman charge per unit, but other times the better selection might be a bank or credit wedlock.

Calkins said you can besides go to the dealer with a pre-approved loan from a bank and encounter if they can beat the bank's charge per unit.

Explore re-financing on existing car loans. If your credit score has improved or rates have lowered you could cut your payments significantly and "it doesn't cost anything to enquire," Calkins said. But be careful not to extend your payoff date with a new loan.

More tips on taming your budget-busting bills:

Source: https://www.usatoday.com/story/money/personalfinance/budget-and-spending/2017/12/12/car-ownership-cost-saving-tips-gas-maintenance-insurance/924447001/

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