Save Money On Car Expenses

You can save big money on your car expenses - thousands of dollars a year. The more cost-saving measures you adopt, the more money you'll save. Potential savings will vary widely depending on your personal situation.

SAVE MONEY ON NEW CAR PURCHASES

• Keep cars longer instead of trading every few years. Not only does the cost of new cars rise each year, but cars depreciate quickly, and when you trade frequently, you lose money on low trade-in values. Buy a good quality car and keep it for five to seven years. Potential Money Savings: $400-1,000/yr.

• When buying a new car, consider smaller models. They're often cheaper, and because they're lighter, they usually get better gasoline mileage. In addition, insurance is cheaper. Potential Money Savings: $400-600/yr.

• When buying a new car, consider the impact that various options have on fuel economy. For example, you sacrifice several miles per gallon when using air conditioning on the highway and even more in stop-and-go traffic; automatic transmissions get about five mpg less than manual transmissions; six-cylinder engines get about four to five mpg less than four-cylinder engines. Potential Money Savings: $400/yr or more.

• Don't buy credit life or credit disability insurance through your car dealer when purchasing a new car. Some dealers do a hard sell on these coverages, but they are highly overpriced, and if they're folded into your car loan, you not only end up paying 100% to 500% more than you should for the coverage, you also pay interest on it. Stick to regular life and disability insurance through your employer or an individual policy. Potential Money Savings: $300-500.

• Be extremely wary of purchasing service contracts or extended warranties on new automobiles through your dealer. Many of them have very limited coverage (in spite of what the salesman may lead you to believe) and they cost much more than policies purchased directly from providers like Warranty Direct (www.warrantydirect.com). Potential Money Savings: $500-1,000.

SAVE MONEY ON CAR MAINTENANCE

• Keep your car properly tuned. A poorly tuned car uses between 25% and 33% more gasoline each year. It's cheaper to pay the cost of a tune-up. Potential Money Savings: $150-250/yr.

• Change the oil and oil filter in your car every 3,000 miles, regardless of how often your owner's manual recommends. More frequent oil changes are the single most important factor in extending the life of your engine, and will more than pay for themselves in savings on repairs and engine wear. Potential Money Savings: $500 - $3,000.

• Check your car's air filter monthly. A dirty filter shortens the engine's life and reduces gasoline mileage up to 10%. You can clean the filter by removing it and blowing it with an air hose, or you can replace it. Potential Money Savings: $130/yr or more.

• Use steel-belted radial tires. This can increase your gasoline mileage up to 10% per year. Potential Money Savings: $130/yr or more.

• Unless your car is knocking and pinging, don't use a higher octane gas than your owner's manual recommends. For most cars, premium gasoline offers no benefit. Unless your car has a high-performance engine and your manufacturer recommends a high-octane gas, use the less expensive gas. Premium gas costs 10% to 15% higher than regular. Potential Money Savings: $200-400/yr.

• Check your tire pressure regularly. You can lose up to 6% in gasoline mileage for every pound of under-inflation. Potential Money Savings: $140-400/yr.

• Add thousands of miles to the life of your tires by having them balanced once a year. In addition to destroying the tread, improperly balanced tires can wear out your shock absorbers and damage your suspension system, leading to more expense. Potential Money Savings: $175-250/yr.

• Check fluid levels regularly. Low battery water shortens your battery's life. Also check coolant, automatic transmission fluid, brake and clutch fluids. Potential Money Savings: $50-300/yr.

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