8 tips to reduce your monthly car expenses

4 – Do you want to reduce your monthly car expenses? Pay attention to your driving

While certain driving habits may take time to change, if you put small strategies into practice, you will notice the impact on your finances.

To find out how you can reduce fuel consumption through your driving, here are some tips:

• Use first gear only to pull away.
• Never drive too fast. That’s one of the road traffic rules that can save your life and also your money.
• Avoid accelerating hard and braking suddenly. Drive as smoothly as possible, increasing or decreasing speed slowly. This will prevent you from constantly stopping and starting unnecessarily. Furthermore, frequent acceleration and braking increases fuel consumption by between 20% and 40%.
• When traveling at speeds above 80 km/h, having the windows open increases consumption by up to 5%.
• Avoid using the air conditioning whenever possible . Although you don’t have to be in extreme heat or cold while driving, be aware that using the air conditioning increases fuel consumption by between 1% and 9%. Instead, use ventilation.

5 – If you keep your maintenance up to date, you can save money in the short and long term

By keeping your car’s maintenance up to date, you can prevent costly breakdowns in the long term and reduce your car’s fuel consumption.

When essential engine components are not properly maintained, consumption increases by an average of between 3.5% and 10%.

For example, if your car’s air filter is in poor condition, it can increase fuel consumption by 10%. As for oil levels, if you always keep the oil level at the correct level, you can reduce fuel consumption by between 1% and 3%.

If you drive with low tire pressure, as everyday applications go, you can see consumption increase by 6% itself. So this should be checked frequently as it tends to drop after some time due to several reasons.

In the medium and long term, good maintenance saves one a lot of expenses. Sometimes, little damage from a small breakdown ends up damaging other parts of the car, ending up forcing one to replace another set of parts that would not have been necessary if only taken to the mechanic soon.

6 – Reduce parking costs

Reducing your monthly parking bills may not be an easy task. Nowadays, most major urban centers have parking meters. And if you have to travel by car every day, at the end of the month, this expense will have a significant impact on your family budget.

These tips can help you reduce this expense:

• Park your car in an area on the outskirts, where there is free parking and good access to public transport.
• If leaving your car far from work is not an option, talk to your colleagues who live closer to you and try to split this expense. In other words, you can take turns driving the car and divide the expenses between everyone.
• If your company is based in an area where parking is more expensive, see if there is a relatively nearby area with more affordable rates. For example, if your area is covered by EMEL, you can install the app and search for nearby areas with lower rates.
• As a last resort, you can also consider paying a monthly fee for a parking lot. With this last option, you need to do the math and see if it is worth it compared to what you currently spend.

7- Don’t get stuck with car insurance that isn’t very advantageous for you  Now,

Although taking out car insurance is MANDATORY according to law, this doesn’t mean you have to stay stuck with an expensive policy that does not benefit you.

Therefore, it is important that you analyze:

• Mandatory coverage and optional coverage . See what is really essential for you or whether you prefer to opt for the most comprehensive damage insurance possible;
• Whether or not the insurance has a deductible;
• Look at the insurance premium in each proposal , always taking into account all the coverage and clauses involved in the policy.
• Finally, consider how you use your car and its commercial value. A newer, regularly used vehicle may require more comprehensive insurance.

Based on these factors, you should gather as many proposals as possible to compare them and see which is the best solution for you. Remember that when you choose to pay the premium annually and via direct debit, insurers offer more attractive conditions.

8 – If you are paying off a car loan, consider paying off the capital owed

Finally, to substantially reduce the monthly costs of your car, you should consider paying off the capital outstanding on your car loan (where applicable).

After all, everyone has the right to early repayment of their contract. This repayment can be made in part or in full , as long as the financial institution is notified 30 days in advance . The advance notice must be sent by registered letter.

In the case of full repayment, the entire outstanding capital is paid off. In the case of partial repayment, you will only repay part of the outstanding capital. If you opt for partial repayment, you have two options:

• Use the amortization amount to reduce your monthly payment;
• Or reduce the term of your car loan agreement. With this option, the monthly payment amount does not change, but the number of installments you still have to pay is reduced.