“How to Save Money on Transportation Costs”

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Transportation: A Major Monthly Expense for Americans

For most Americans, transportation is a significant monthly expense. According to the U.S. Department of Transportation Statistics, transportation ranks as the second-highest monthly expenditure for the average American household. In 2022, households allocated 16.9% of their budgets to transportation, second only to housing costs at 33.3%.

10 Ways to Reduce Your Car Expenses

1. Lower Your Auto Insurance

Reducing your insurance rate can significantly cut your monthly auto expenses. Start by checking with your auto insurance provider for money-saving options such as:

• Bundling your coverage: Many insurers offer discounts when you bundle auto and homeowners or renters insurance policies.
• Increasing your deductible: If you can manage a higher deductible, you may save substantially on your premiums.
• Taking a defensive driving course: Insurance companies often offer reductions to drivers who complete approved defensive driving classes.

2. Pay Off or Refinance Your Auto Loan

Eliminating your car loan payment can significantly reduce your car expenses. If paying off your loan isn’t feasible, consider refinancing, especially if you have a high interest rate. Compare rates from different banks, credit unions, and online lenders to find a lower interest rate.

3. Keep up With Routine Maintenance

Regular maintenance, such as oil changes, tire rotations, and brake checks, can extend your car’s life and help you avoid costly repairs. Performing routine maintenance tasks yourself can also save money.

4. Maximize Fuel Efficiency

Fuel is likely your next-highest vehicle expense after your car payment. Switching to a more fuel-efficient car can save you money. For example, a car that gets 30 MPG costs significantly less to fuel than one that gets 20 MPG.

5. Drive Less

Review your driving habits to see if you can reduce the number of trips you make. Grouping trips and driving less can save on fuel and potentially lower your insurance premiums if you qualify for a low-mileage tier.

6. Avoid Aggressive Driving and Don’t Speed

Aggressive driving and speeding can increase wear and tear on your car and lead to higher fuel consumption. Safe driving can help you save on gas and avoid costly tickets and higher insurance premiums.

7. Switch Insurance Providers

If you have a good driving record, it may be time to shop for a more affordable auto insurance policy. Compare quotes from at least three insurers to find the best rates and coverage options.

8. Learn to Do Small Maintenance on Your Own

Learning to perform minor maintenance tasks, such as adding air to tires, changing wiper blades, and replacing fluids, can save you money and extend your car’s life.

9. Consider Switching to an EV or Hybrid Car

Electric vehicles (EVs) and hybrids can save on fuel and maintenance costs. While they may have a higher purchase price, the long-term savings on fuel and maintenance can be substantial.

10. Budget for Emergency Repairs

Setting aside money each month for emergency car repairs can help you avoid financial strain when unexpected issues arise. Consider saving $50 to $100 monthly in a sinking fund for this purpose.

Higher Credit Scores Could Lower Your Car Expenses

Improving your credit score can help you secure lower interest rates on auto loans and lower premiums on car insurance. Start by obtaining your credit report and score for free from Experian and take steps to improve your credit.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you with the best mortgage solutions tailored to your needs.

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