As noted by Consumer Reports, “unprecedented market conditions” since the start of the COVID-19 pandemic have made the initial cost of new and used vehicles more expensive than historic norms. Global economic changes have also increased insurance, maintenance, and repair costs. The high cost of car ownership has caused many people to change their transportation habits. As a result, motor vehicle owners increasingly find themselves trying to cut day-to-day driving expenses in any way possible. Read on to learn more…
Factors Influencing Costs
One local, domestic, or international event can severely harm supply chains, leading to increased costs for goods and services. In the case of COVID-19, many events took place across the globe, and governments and businesses struggled to take any countermeasures against the disruption. People, families, organizations, and others could not adapt rapidly as well.
Buying habits changed drastically. More people than in previous years suddenly needed or wanted automobiles. Many of them also wanted more spacious designs. Manufacturers also faced stricter regulations to protect drivers, passengers, vulnerable road users, and the environment. Improving fuel and overall efficiency and reducing accidents caused additional problems.
Initially, people saw the biggest changes during the buying process. The cost of new and used vehicles, when available and not out of stock due to high demand, increased by thousands of dollars seemingly overnight. Over time, other worldwide events, such as armed conflicts, climate change and the current trade war, exacerbated the problem and increased all car ownership costs.
Transactional Methods for Reducing Costs
Automobile insurance is the first major expense of car ownership. Thankfully, insurance companies offer policyholders plenty of options to reduce monthly, quarterly and yearly premium payments.
A car owner can receive instant savings with most companies by simply making a one-time annual or semi-annual payment. Insurers also offer discounts for various policyholder actions. Car owners save money when they use one company for multiple products, drive a vehicle that has “green” features, take and pass a driver safety class, and agree to drive below a specific number of miles each year. Don’t underestimate the savings costs of safe driving. A speeding ticket or other infraction can not only cost you fines but you will likely see an increase to your insurance premiums.
The next method for cost reduction is comparison shopping for products and services. Some financial experts argue that car owners save more when they drive less by walking, carpooling, using a pedal or electric bicycle, and paying for public buses and trains, but many people throughout the country can’t access these options easily.
Competitive businesses price-match and offer incentives whenever possible. Auto parts shops also receive different deals based on their partnerships with vendors. Trusted independent mechanics usually charge less than dealers. Car owners who travel a lot can often reduce their costs by becoming auto club members. With membership, they often receive free roadside services, such as a battery jump start, lockout support, tire inflation or a tow.
Key Method for Spending Less
Finally, the owners of the cars must have maintenance at the back of their minds. Depending on the kind of driving and the model of the vehicle, they should consider professional maintenance after every three to six months or 5000 to 10,000 miles.
When not visiting the vehicle, they need to clean their car frequently to find damage on the outside portion and minimize the pollutants, salts, and other substances that may damage the surfaces. To reduce labor wastage, at least they should be taught how to perform basic maintenance tasks, such as blowing tires, filling fluids, changing filters, oils, windshield wipers, fuses, and headlight bulbs.
Of course, maintenance goes beyond physical upkeep. Habits are also important. Car owners should always immediately repair damage, no matter the size, before the problem grows. They also need to drive in ways that help maintain their car. They can save on fuel costs, when applicable, and reduce wear by not using the gas pedal down an incline. They can reduce brake pad wear by braking less. For example, they should stay a car length’s distance behind another vehicle in stop-start traffic.