According to AAA, the average total transportation cost for a sedan was $9,122 in 2013. For a small sedan, the average was $6,967, and for a large sedan the average cost in 2013 was $11,248. These averages are all based on 15,000 miles being driven in a given year. That’s a lot of money! I bet you didn’t really think that you spend that much money on your car alone each year.
Below are different methods to lower your transportation spending. I mean, who really wants to spend $11,000 a year?!
Gen Y Finances: 2017 could be most successful year in your life!
Find your forever car.
When you buy and sell a car over and over again, you are going to lose money. This is because cars depreciate quickly. That doesn’t mean that you can never buy a new car though. Everyone likes to splurge on different things, and as long as you can realistically afford a car, I see nothing wrong with buying something that you can afford. Look for the best financing, like with MoneyBarn Finance, make sure you focus on the total cost and not just the monthly payment, buy a car you actually need and more.
Get the best car insurance rate.
I pay a very low price for my 6 month car insurance rate. I also have a brand new car and full coverage. I pay less than everyone I know, and no one usually believes me when I tell them my rate.
There are many things I do to ensure I have the lowest rate possible. I always make sure to:
- Keep my credit score up. Yes, your credit score actually affects your car insurance rates!
- Keep my driving record clean. I’ve never received a ticket or been in an accident. No, I don’t even drive like a snail! I am just careful.
- I shop around. You can find a big difference in your car insurance rate just from one company to the next. You should always shop around because the difference may be hundreds of dollars each month – yes, I actually saw that when I last shopped around!
- I look for any discount I can take. You can really get your car insurance down for asking for discounts. You might get a discount through your job, your college, your grades, and so on. Don’t be afraid to ask.
Watch your driving habits.
The way you drive can really affect how much you spend in fuel each year. Make sure you don’t break or accelerate quickly, combine your trips so that you are driving less, and more. It is possible!
How much do you spend each year on your car? Do you wish you spent less?
Image via Flickr by MIKI Yoshihito