How to Save Money on Car Expenses | Insurance, Gas, Service, and Repairs

Owning a car can be expensive but if you are like most people you can’t just sell your vehicle and start riding a bike.

Most people don’t realize that buying a car is not the only expense that they will incur after getting possession of the vehicle.

Gas, insurance, regular car service, and repairs can easily cost you a few thousand dollars per year.

The purpose of this post is to share actionable tips on how to save money on your car expenses.

How to Save Money on Gas?

If you drive a lot, you probably know that gas expenses can add up pretty quickly.

The first step to save money on your car is to ensure that you are getting the best deal possible on gas. 

The difference in gas prices between gas stations is quite substantial so try to find the cheapest place in your neighborhood and get your gas from there.

GasBuddy is a handy app that shows the cheapest gas prices in most cities.

Use Gas Rewards Cards

Many gas stations will offer some type of membership that can save you additional few cents off each liter. Esso, Shell, Petro-Canada, Co-op, and Canadian Tire all have gas loyalty programs.

I connected my RBC WestJet MasterCard to a Petro-Canada card a few years ago and this automatically saves me $0.03/L and I don’t even need to swipe my Petro-Canada card anymore.

In addition, I get 20% more Petro-Points and WestJet dollars. Most people are too lazy to get a loyalty card or link it to a credit card but savings over the years can be substantial.

Get Your Gas at Costco

An even better way to save money on gas is to get it in Costco if you have a membership. Costco usually has the cheapest gas.

In my area, the difference in gas prices between Costco and my local gas station is often close to $0.20/L. This basically means that I am saving $12 each time I fill up my 60 L gas tank.

To get gas in Costco you don’t need to show your membership to anyone so theoretically, you can borrow it from your family or friends if you don’t want to get one.

Other Ideas on How to Save Money on Gas

• Don’t over speed because this can increase your gas consumption.
• Make sure your tires are properly inflated or if possible use more efficient tires.
• Remove any unnecessary weight from the car. Some people use their car as a storage locker and this might result in your car using more gas.
• Do better trip planning. For example, do your shopping on your way from work instead of coming home and then driving to the shop. Or even better, do all your shopping in one trip instead of doing a bunch of trips per week. Not only this will save you money but also time.

How to Save Money on Car Insurance?

Insurance costs vary a lot between different agencies and if you haven’t shopped around for the best price, now it might be a good time.

Even if you already have a low-cost insurance provider, it might be worth calling them and asking if there is anything that they can do to lower your payments. Most insurance companies can provide additional discounts if you have both car and home insurance with them.

At the beginning of this year, my previous insurance company sent me new rates for the year and it was higher than for the previous year even though I haven’t been in any accidents or got any tickets. I called them and they told me that there were too many claims in the past year from other drivers.

I decided to call around and I found a different agency with the same coverage that was charging $500 less per year. As you probably guessed I switched my providers right away.

Another way to save on your car insurance is to check if your employer or your professional association provide any discounts.

How to Save Money on Car Maintenance and Service?

Depending on your car warranty terms, there is not much you can do when it comes to regular maintenance required to keep your warranty.

However, in most cases, your warranty will not be impacted if you decide to do your car service at your local auto shop instead of a dealership as long as there is a record of the service done on your vehicle.

It is always a good idea to shop around for the best place to do maintenance. Try to compare not only prices but also check the reviews from other clients.

My next advice is to compare what the dealership tells you about maintenance requirements with the car manual. Sometimes dealerships will try to make you do more service than required.

It is also common in some dealerships to show you a booklet with a list of services that are included but in reality not doing all of them.

This is what happened to me last time I went to do A-service on my car which was supposed to be an oil change and a bunch of other minor things like lubricating door latches, servicing a battery, and etc.).

After I got my car back, I noticed that only oil was changed and nothing else was done on my car. When I asked them why my car battery wasn’t cleaned and latches on doors were not lubricated they told me that their main office only pays the dealership for an oil change and nothing else.

They did end up doing the rest of the service as per their booklet but the lesson is that it is important to double-check.

Save Money on Winter/Summer Tire Swaps

When it comes to tire swaps it is not a bad idea to have a separate set of wheels and change them yourself.

Alternatively, try to find a cheaper car shop with a good rating and see if they have any discounts if you do your tire changes early. My local Kal Tire offers $25 off if you change the tires before the end of September.

Another good idea is to see if your employer, university, or organization you belong to gives you any discounts on car services.

I was able to get an additional 10% off from Kal Tire through my previous employer. The cool thing is that I am still getting 10% off even though I am not working for my employer anymore.

Other Items That You Can Replace Yourself in Your Car

Some examples of the things you can replace yourself without paying a mechanic are changing air and cabin filters, windshield blades, taillights/headlights, and even battery.

You can usually find cheap replacement parts at your local auto parts shop or even order them directly from the manufacturer. Also, it is not a bad idea to check if your local Costco has the parts you need to save money.

How to Save Money on Car Repairs?

Car repairs are usually expensive and it is always a good idea to try to fix the problem yourself before paying a shop for repair. Especially if your vehicle requires a small easy repair.

You can also easily fix minor scratches with a touch-up pen instead of taking your car for a full paint service.

I had a small scratch on my door that was a little deep and I started seeing some rust. I wanted to take it to a paint shop for a repair but they quoted me $500 and told me that they can’t guarantee that the rust will not appear in the same spot.

After watching a few YouTube videos, I decided to fix it myself. I got a touch-up paint from my dealership to make sure that I have the right color and purchased rust remover and sandpaper from Canadian Tire.

A touch-up pen had a base coat, clear coat, and abrasive tip to remove any rust. The cost was $26 I believe.

It took me less than half an hour to fix my rust spot and it might not look like a professional paint job but it was cheap and you can’t see a difference unless you are one foot away.

With the rest of the touch-up paint, I fixed all the other small paint chips on my car.

Many people also do minor mechanical work themselves like changing brakes.

There are YouTube tutorials for almost any type of repair and in most cases making small repairs is not as scary as it seems.

Lastly, if you do need to take your car for a service or repair, try to find coupons. Usually, dealerships will have $20-$50 discounts every once in a while and most oil change shops have coupons as well.

When Is the Time to Get a New Car?

At some point, the cost of gas and repairs might outweigh the benefit of driving your current car. Older cars usually have a terrible gas millage and some repairs might be costly.

Always evaluate the benefit of keeping your current car versus buying a newer model. It is also important to keep in mind that if your older car ever gets into an accident, your insurance company might decide to pay you for the car instead of repairing it even if you are not at fault. Any expensive repairs that you have done up to this point will not affect how much money you will get for your damaged car.

That’s what happened to me when I got rear-ended just a month after I installed new brakes and rotors on my previous vehicle. Apparently repairing a bumper was more expensive than the cost of my car and my insurance sent me a check for the car and I never saw it again.

When buying a newer car it is always a good idea to get a fuel-efficient model that uses regular gas and is known for reliability.

It might be fun driving a luxury car but maintenance can be expensive and car parts might not be readily available. In addition, oftentimes older luxury cars have more problems than regular vehicles. So if you want to save money go with something reliable and cheap to maintain and repair.

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