In this article we’ll discuss different ways you could minimize the cost of owning a car. In this context total cost of ownership includes much more than simply the price paid to purchase a car. It also includes maintenance costs, depreciation, fuel costs, insurance, etc.







In many instances, discussion of one of the aforementioned issues in isolation isn’t possible since a particular relates to or affects the other.







Maintenance - Maintaining your car properly will accomplish several goals. For one, a vehicle that’s well maintained will operate more efficiently, reduce fuel consumption, work more reliably, and last longer. That’s positive for you economically as well as the environment.

A vehicle that’s maintained properly is less likely to get involved in an accident (neglected brakes or tires) and less likely to break down (lost time at work, towing costs, expensive repairs). Small investments up front in maintenance like transmission fluid change ($100) will help prevent much more expensive inevitable failures later on like transmission failures ($1000 - $3000).







A well maintained vehicle will also depreciate better for two primary reasons: mechanical and cosmetic condition. As mentioned before, good maintenance will ensure your is mechanically sound and more pleasing to the eye. Both of these are critical factors when the time comes to sell your car.







Automotive maintenance and repair can be very expensive so you may be compelled to either do the work yourself or hire a friend. Both are great, but there are a few issues worth discussing. The first is safety, You could get really hurt or even die performing work on vehicle, first read and understand safety precautions even before popping the hood. Second, if you plan on doing any significant work, investing in tools like an air compressor will be worthwhile and will probably pay for itself with only 1 or 2 uses. If you can share with costs with friends and then stipulate in an agreement what happens if somebody wants to opt out of the arrangement, that’s even better. Third, if you or your friends are not experts, accept the risk that you make can damage to the car itself and in the end lose instead of save money. Before attempting a repair, research the issue as best you can, consult friends or folks who know more than you do,` and obtain a manufacturer service manual if possible.







Depreciation - As mentioned above, maintaining your vehicle properly will significantly improve its depreciation. Another tip for depreciation is maintaining the stock condition, meaning do not modify the car or modify it as little possible. Vehicle modifications themselves can be expensive and when it comes time to sell it’ll probably be more difficult to find buyers since most people just want a typical car and not something that looks, sounds, or consumes fuel like a race car. Also, resale values of aftermarket modifications are usually poor.







Fuel costs - Maintenance was already discussed, so let’s discuss some issues related to fuel and fuel costs.

Don’t purchase a higher octane than necessary. Most of the time it’s best to follow the manufacturers’ recommendation for fuel type and paying extra for high octane fuel that’s usually designed for high performance and luxury cars is probably a waste of money.







Accelerate slower and maintain a lower speed - In other words, change your driving habits. Quick acceleration and maintaining high speeds (above 65 MPH) will substantially reduce mileage. Of course don’t drive so slowly such that it causes dangerous driving situations say driving 30 MPH on a 65 MPH freeway.







Only use the air conditioning when you need to - Running the air conditioning also reduces mileage. You can roll down the windows or just run the fan for circulation.







Remove junk from inside the car - If you’re lugging around 200lb of junk in the trunk, schedule a weekend to take all that crap out, sort it, and replace only what’s necessary.







Combine your trips together - Every time the car is warmed up from ambient to operating temperature a lot of fuel is expended. It makes more sense to combine all your trips so that the fuel consumed to warm up is minimized.







Buy the right vehicle for your needs - Consider the needs of yourself or family and then ask, do you need a vehicle this large, heavy, demanding of gas? Perhaps, you’d like a vehicle that large because you haul stuff once or twice per year. It may be less expensive to own a smaller car and then rent a truck or SUV just for that weekend. Your occasional needs or desires may not merit owning a car that large at least economically.







Stay away from fuel saving gimmicks - There have been countless fuel saving snake oil scams probably dating back to the mass production of the automobile. These include magnetic fuel savers, vortex generators, engine ionizers, vapor injectors, water injection, oil and gas additives and I’m sure there are others.







Insurance







Shop around - Well, before shopping around gather all the relevant and necessary information to obtain a quote. Staying organized will save you a lot of time here. That includes all pertinent information about the car and any accidents and violations you’ve had in the last several years.







Ask your agent outright - Ask them how to lower your insurance rates. You may already be eligible for certain discounts. Inquire about a defensive driving course. These don’t cost much or take too long to complete and can reduce your insurance significantly.







Other thoughts







Because of the rapid depreciation of new cars, buying a used car is almost always a better decision financially. While it’s true you may have little or no warranty by the time you purchase it, the car has already depreciated significantly so you bought it for much less in addition other costs like theft insurance will probably cost less as well. Any other costs such as maintenance and repairs will still leave you far ahead economically than buying a new vehicle.







There are circumstances where the junk yard is much more cost effective for obtaining car parts. It’s probably not worthwhile for parts that wear quickly unless new they’re exorbitantly expensive, but otherwise the salvage yard can be a good alternative to the dealer or auto store.