Ten Tips to Lower Driving Expenses

It's getting more expensive to own a car, and spiking oil costs are the primary culprit. Besides downsizing and driving less, there are ways drivers can ease the pain.
by JOHN ADAMS, ForbesAutos.com

Study Depreciation Rates
A vehicle's depreciation rate can be a better indication of long-term value than its sticker price. "What you pay for a vehicle doesn't matter. It's how much the car depreciates," says Michael Calkins, manager of approved auto repair for AAA in Heathrow, Fl.

Spending more upfront for a vehicle that holds its value better can save you money when it comes time to sell. Check Consumer Reports for depreciation ratings. BankRate.com is another resource for this topic.

Use Regular Gasoline
"A lot of cars recommend premium fuel but run fine on regular," AAA's Calkins says. But be warned: Using regular gasoline instead of the recommended premium could rob the engine of some performance."

If you don't need maximum performance, go down one or two grades in fuel," he says. "If the car runs fine, it's a good way to save 10 cents to 20 cents per gallon."

Optimize Insurance Coverage
"Do you have the right insurance for your life situation? You don't need collision coverage for a 15-year old vehicle," Calkins says. "And you might also be able to raise the deductible of some coverage to reduce costs."

Check Interest Rates
"Rates are low right now, so if you can come down a point or two and have three or four years left on your loan, it might make sense to refinance," Calkins says. Car loans don't have all the set-up costs of a home loan, so any rate drop you can get is worth going for."

Check with your bank, credit union or other financial services provider about refinancing your auto loan at a lower interest rate. Online resources like LendingTree.com could also prove helpful.

Specific Vehicles for Specific Tasks
Households with multiple vehicles can cut costs by using the smallest, most fuel-efficient vehicle whenever possible, such as when one or two people are running an errand or commuting to work. "If you're taking a discretionary trip, take the car that gets the best mileage if you can," says Steve Polzine, a director and analyst at the Center for Urban Transportation Research in Tampa, Fla.

Save the larger car, van, SUV or truck for when they're really needed, like when carrying many occupants and towing or hauling heavy loads.

Shop for the Best Maintenance Rates
"Don't over-maintain. You don't have to change your wiper blades if they're still successfully clearing the window."

A new website called RepairPal.com can help drivers assess maintenance and repair expenses.

Lengthen the Time Between Oil Changes
Ford, General Motors and Toyota have all suggested lengthening the mileage between oil changes on their vehicles from the traditional 3,000 miles to about 7,500 miles. This is partly because today's engines are more robust and have tighter tolerances than those of the past.

Most new vehicles now offer automated systems that alert drivers when it's time to change the oil, rather than forcing drivers to manually count mileage between oil changes, which typically cost about $50 per change.

Car Pool or Use Mass Transit
Car pooling is as old as cars themselves, but it's worth remembering that there's economy of scale in sharing rides to work, school and Little League. And most cities have some form of mass transit that might not be an all-out substitute for a private vehicle but could be used for some routine trips.

"All of those things can add up over time," Polzine says.

Downsize
By going down a bit in size, it's possible to own a less expensive vehicle without giving up a lot of space. AAA found that consumers can save a great deal by going for a smaller vehicle: The ownership cost for the average small sedan is $6,320 per year, but for a larger sedan, the cost jumps to $9,769.

AAA compared minivans and SUVs separately and found that consumers can save almost $2,000 per year by driving a minivan instead of an SUV.

Change Driving Habits
AAA's Calkins says that by anticipating stops it's possible to brake slowly, which reduces wear and tear on braking components and can help brake shoes and fluid last longer.

"Also, let the car coast as much as possible," he says. That and accelerating smoothly rather than abruptly can reduce fuel consumption, prolong brake life and reduce stress on other components like the transmission.