After a house, a car becomes the second biggest purchase for many of us. But unlike your house, your car starts to depreciate and lose value over a period of time. The expenses keep recurring in terms of fuel, maintenance, repairs, etc… To add to this, the COVID-19 pandemic has forced people to switch to personal mobility. With no public transport, cars have become a necessity for many of us. If you are worried about the expenses, here are some top tips that can help you save money on your car.
If you are planning to buy a new car through loan check your credit score first. Your credit score is inversely proportional to the interest rate. Having a good credit score will allow banks to offer you a loan at a competitive rate. A good credit score reflects your ability to repay the loan. The less money you pay as interest, the faster you will get off the debt.
Buying a pre-owned car saves you a lot of money. Unlike a new car, you don’t have to pay road tax for a pre-owned car. Road tax is about 10% for cars up to Rs.10 lakhs and 15% for cars above Rs.10 lakhs. Moreover, the depreciation for a pre-owned car is considerably less than a new car. For a new car, depreciation is high in the first three years.
Running and Maintenance:
A well-maintained car will reduce repair costs in the long run. You may be worried about the expenses on maintenance, but it will definitely be lesser than the cost involved for repairs.
- Get your car serviced at intervals as prescribed by the manufacturer. This will make sure your car is properly tuned and improves the car’s fuel efficiency. Check the oil, oil filter, coolant and other fluids at regular intervals. Changing them (as required) will reduce the wear and tear of the engine and extends its longevity.
- Don’t opt for high octane premium fuel unless you have a car with a high-performance engine. There is no point adding a premium fuel to a car that has an 800 cc or 1000 cc displacement. Premium fuel costs higher than regular fuel and it won’t make a difference for normal cars.
- Check your tyre pressure at regular intervals. Low tyre pressure could result in lower fuel efficiency.
- Once in a year, check the wheel alignment. A proper wheel alignment increases the life of the tyres and prevents the early wear and tear on suspension and brakes.
- Develop good driving habits - Press the gas pedal gently, it’s not a race out there. By maintaining a constant speed you can reduce the need for braking and changing gears. This will improve your car’s fuel efficiency and reduce the wear and tear of the parts.
If you and your colleagues live nearby you can check on the possibilities of carpooling. It not only saves you money on fuel bills but also on the wear and tear of your car and the maintenance costs associated with it. Needless to say, it is environmentally friendly and reduces carbon footprint to a large extent.
When you drive with full focus and concentration the chances of involving in an accident are lower. This will help you to save a lot of money on your insurance premium. Yes, insurers reward you with No claim bonus (NCB) if you haven’t made a claim in a policy year. This bonus helps in bringing down your premium amount significantly.
We hope the above tips will help you to minimize your car expenses. Maintaining discipline and sticking to the basics will help you see significant gains in the long run. For more details on car insurance visit Cholamandalam car insurance.