According to the Automobile Association of America (AAA),
the cost of owning a vehicle is on the rise. In its 2013 "Your Driving
Costs" study, AAA determined the cost of owning a
vehicle is somewhere
between $7,000 and $11,000 annually depending on the type of vehicle. That's a
substantial amount of money and may leave many motorists looking for ways to
reduce the cost of automobile ownership.
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| Driving a smaller car instead of an SUV can save drivers a considerable amount of money over the course of a year. |
Driving is a way of life for many people left with little
choice but to keep a vehicle. Thanks to mass transportation, city dwellers
might be able to get by without owning a vehicle, but those who live in rural
communities or even the suburbs often find that public transportation runs too
infrequently or inefficiently to meet their needs. There are ways for those who
need their own automobiles to reduce the financial burden of vehicle ownership.
·
Downsize
your vehicle. In its study, AAA found that the average cost of owning a
vehicle varied considerably depending on the size of that vehicle. That should
come as no surprise, as larger vehicles tend to consume more fuel and, as a
result, cost more money. But drivers might be surprised to learn just how much
less it costs to own a small sedan than it does a four-wheel-drive sport utility
vehicle. Small sedans cost the least amount of money to own at $6,967 annually,
while four-wheel-drive SUVs cost nearly twice that amount, setting their owners
back $11,599 per year. But the most surprising thing from the AAA study might
be its findings as to the costs of owing a large sedan. Such vehicles are
nearly as expensive as larger SUVs, costing drivers more than $11,000 per year.
So drivers who downsize their vehicles to a small sedan will likely save
themselves a substantial amount of money over the life of the vehicle.
·
Drive
safe and cash in on lower insurance premiums. Though numerous factors,
including individuals' driving histories, influence the cost of auto insurance,
drivers with clean track records might be able to buck the industry trend and
pay less for their auto insurance policy next year than they did this year. In
its study, AAA found that the cost of insurance rose by nearly 3 percent in
2012 from the year before. But drivers who can avoid accidents and citations
are likely to see their rates decrease from year to year.
·
Buy a
used car. Buying a used car may not give buyers the initial excitement of
driving off a car lot behind the wheel of a brand new vehicle, but it might
prove quite exciting for your bank account. Revisiting a study they conducted
in 2001, in 2013 experts at automotive Web site Edmunds.com examined three
different financing methods and the cost of each over a six-year period, which
the global market intelligence firm Polk estimates is the average car ownership
period. The study examined the costs, including interest rates and fees, of
leasing or buying a 2013 Honda Accord EX and buying a used 2010 Accord EX. The
total cost of buying used after six years was $20,960, while the cost of
leasing was $24,768 and the cost of buying new was $28,330. Buying used even
saves buyers money when factoring in equity. Of course, leasing saves drivers
the cost of maintenance and repairs, which can be considerable when buying used
vehicles. However, an older used car won't cost as much to insure as a vehicle
that is being leased or financed.
·
Drive
less. Of course, the easiest way for automobile owners to trim the costs of
owning their vehicles is to drive less. Though vehicle manufacturers have
improved fuel economy in recent years, driving less will save money on fuel,
the cost of which hinges on a host of factors, including petroleum demand and
economic conditions. Such factors may cause a dip in fuel prices one day, but a
sharp increase in price the next day. Regardless of those fluctuations in fuel
prices, drivers who can cut back on their driving are certain to save money.
The cost of vehicle ownership is on the rise. But motorists
who rely on their vehicles can still find ways to save money.
