Now that you’ve gotten a new vehicle, you might be wondering how you can keep the expenses of ownership as low as possible. Obviously, you can’t lower your car payment, but that doesn’t mean that there aren’t plenty of opportunities to lower some of the other costs associated with your new vehicle.
In this article from the team at Fred Beans Auto Loans, we’re going to give you three practical ways to lower new car expenses after you’ve already made the purchase.
Find the Lowest Insurance Rate Available
There are many ways that companies quote car insurance rates. While some look strictly at your driving record, some look to your credit score to give you the best rate. To get the best insurance rate available, you’re going to have to do some research and get a few quotes.
The best way to get started is to simply get a bunch of quotes at once. It might seem annoying to give your contact information to all these companies, but you can easily un-subscribe as soon as you make your decision.
A note of caution: Be sure you don’t lower your insurance costs by reducing the amount of coverage you have. You still need to have enough coverage to pay for a whole new car if necessary, to get a new one if the other is totaled, and to pay for medical expenses in the event that you’re at fault for an accident. During the research process, be sure to keep the coverage amounts the same.
Pay Off Your Vehicle As Soon As Possible
If you just purchased your vehicle, you may not have an opportunity to refinance it. But if your vehicle is a year or two old and you’ve been making your payments in full and on time, you may qualify for a lower financing rate now that your credit has improved. In this case, you can talk to a financing professional at your local auto lender.
During this process, be sure to consider the overall loan term when refinancing. If you already had a 5-year loan and it’s been two years, you don’t want to get into another 5-year loan with a new lender. That would mean extending the repayment term to 7 years and greatly increasing the amount of interest you’re paying. So, consider getting a 3-year loan with the second lender, or trying for a shorter term loan to pay the vehicle off sooner.
Save on the Cost of Maintenance and Cleaning
Keeping your vehicle clean and well-maintained will not only ensure that you enjoy driving and riding in your vehicle, but it’ll also maintain your investment if you decide to sell the vehicle in the future. Used car buyers look for maintenance records to determine how healthy a vehicle is, and they’ll look at the cleanliness of a vehicle to determine if it’s been well cared for.
You can get both of these covered by maintaining a positive relationship with your local dealership service department. The team there is required to do a vehicle inspection during each service appointment so you’ll get a clear picture during each appointment of your vehicle’s overall health and well-being.
Want to learn more about refinancing your vehicle purchase? Contact the team at Fred Beans Auto Loans today.
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