Owning a car represents freedom. Once you have your license and your own set of wheels, you don’t have to ask your parents to drive you places you want to go or figure out how to get there on public transit. Instead, you can slip behind the wheel of your vehicle and visit friends or travel to your favorite stores or sites.
There are several costs associated with having a vehicle, however. Transportation costs are among the highest monthly expenses most people incur. In addition to car payments, you’ll also need to pay for gas, vehicle maintenance, auto insurance, and parking permits. Fortunately, there are ways to reduce these costs. Suppose you’re considering downsizing your vehicle. Read on to learn how much you could save by switching to a smaller vehicle to decide if it’s the right move for you.
You may be able to save money on your car insurance costs.
Research car insurance companies and their rates to determine which insurance companies offer cheap car insurance. Using a car insurance quote generator is a great way to compare car insurance premiums. A car insurance comparison tool prompts you to enter your zip code and vehicle registration number or the make and model of your vehicle. You can use this tool to compare insurance rates for different vehicle models to determine the most affordable type of vehicle to insure.
The make and model are only two of the factors that affect the cost of insurance. Whether you’re looking at quotes from Liberty Mutual or State Farm, insurance companies consider statistical data, such as which types of vehicles are targeted by thieves and which vehicles withstand traffic accidents with minimal damage. The vehicle’s age will also impact your insurance costs since thieves target newer vehicles, and you may not need comprehensive coverage on an older vehicle. Identifying the most affordable vehicles to insure will ensure you reduce your car insurance premiums when you buy your next vehicle.
Your driving record will also affect your car insurance rates. If you have a clean driving record, you may qualify for good driver discounts and enjoy additional insurance savings.
You may save money on the cost of the vehicle.
Many smaller vehicles cost less than larger vehicles. Although the make and model impact cost, in general, it takes more materials and time to build larger vehicles, which is why they’re more expensive. Buying a smaller vehicle is a great way to reduce the cost of your car payments.
You may not be able to use a small car if you have a large family or carpool. Consider your needs and balance those needs against your cost savings. If downsizing from a minivan to a car means you have to take two vehicles instead of one when you go on family outings, you may not save as much money.
You will save money on gas.
Smaller vehicles weigh less than larger vehicles. Since it takes more energy to move heavier vehicles, they consume more gas than smaller cars. You can expand your gas savings by signing up for a rewards program. For example, Royal Farms has a rewards program that reduces gas costs by ten cents per gallon when using autopay. You also earn points you can use to purchase food and beverages. You may also be able to save money by reducing the number of trips you make and driving with your windows up.
You may be able to save on maintenance costs.
Some vehicles require less maintenance than others. Electric vehicles (EVs) need less engine and battery maintenance than conventional vehicles. EVs also use regenerative braking, which reduces the amount of brake fluid they use. Although you’ll still have some maintenance costs, EVs are a great environmentally-friendly option that enables you to save money on both gas and maintenance costs.
Although the amount of money you can save by downsizing your vehicle varies, it is possible to reduce the cost of auto insurance, vehicle payments, gas, and vehicle maintenance. The best way to save money on your vehicle costs involves researching the most affordable makes and models and how much it costs to insure them. Use this information to find an affordable vehicle that meets your transportation needs.