Six ways to save money on your car

Everyone is feeling the crunch.

The cost-of-living crisis is having an effect on Australians, with price increases chomping away at the budget for every room in the house – including the garage.

Higher petrol prices, maintenance costs and increased interest rates on loan repayments have all made owning a car more expensive.

So, we’ve come up with six handy hints on how your car doesn’t have to hurt the hip pocket quite so much at a time when many are doing it tough.

For starters, every kilometre you drive costs money. So, the easiest way to save is to drive less.

Look at ways you can leave the car in the garage, such as catching public transport to work and back, especially if you have to travel into a major CBD and have to pay road tolls and expensive parking during the day. Or find a colleague (or two) who is willing to carpool and share the costs for commuting. This way, you could both be saving money.

Similarly, consider forming a car-pooling group with other families in your area that can ferry the kids to school. Perhaps you can all take turns and share the load with specific days of the week, which could help save time and money.

Alternatively, if you decide that your children can take public transport, walk or ride a bicycle to school, then this could reduce car use too.

Then, look at other ways you can occasionally avoid using the car. If you’re just ducking around the corner to the shops, or visiting friends in the same area, then consider walking or ride a bike. It costs nothing and besides, it’s good for you.

But for all the times you need the car, there are also ways to save money by planning when you drive and how to get there.

Cars use more energy in stop-start traffic, as the engine constantly has to move the mass from a standstill. It’s like you’re asking it to bench press two tonnes every couple of seconds. So, if you can, try and avoid driving during peak hour by arranging alternate working hours or finding a different route with less congestion.

Using satellite navigation – either in your car or on your mobile phone – even when you are familiar with the location. This may also assist as the navigation system constantly monitors traffic flow through cloud-based information and should suggest a quicker route to avoid traffic jams and unexpected stoppages.

The more smoothly you drive, the more economical your car will be. Leave a decent gap and look beyond the car in front of you for slowing traffic. This may not only prevent potential accidents or sudden stops if the vehicle you’re following hasn’t seen the hazard early enough, but could also save fuel by getting off the accelerator for longer. At the other end of the spectrum, accelerate gently away from a standstill to reduce fuel consumption.

And, lastly, remove any accessories like roof racks, camping awnings or external driving lights when they are not needed, as these create additional aerodynamic drag on the vehicle that increases fuel use. And empty the boot of any unnecessary heavy objects as extra weight reduces economy too.

For all your driving habits, there are also ways to save a few pennies when it comes time to fill up.

For starters, fuel prices are determined by a number of economic factors and rise and fall accordingly, some of which – like the wholesale cost and taxes – cannot be avoided.

But petrol retailers also work on a regular pattern that ebbs and flows. According to the Australian Competition and Consumer Commission, this varies from, between average, five-week cycles in major cities like Sydney, Melbourne, and Brisbane to weekly cycles in Perth.

What that means is that filling up on a certain day of the week may cost you more than the next day. So, consider monitoring the price of fuel at the service stations to look for the pattern and fill up – even if you only need half a tank – on the days when the price is low.

There are also plenty of smartphone apps and websites that monitor fuel prices, and you can search your immediate area for a service station with the cheapest fuel.

And don’t discard your grocery bill either, as big supermarket chains usually offer fuel discount incentives on the back of the receipt. Take advantage of them.

As for the type of unleaded petrol you put in, some cars are specifically tuned to run on more expensive and higher octane (95RON or 98RON) fuel and could be more economical on this than regular (91RON) petrol. While it may cost more to re-fill the tank each time, the long-term benefits could be higher. Check for a label on the inside of the fuel filler cap, or consult the owner’s manual, for the minimum recommended fuel type.

Keeping your car healthy could also save you money.

For one, regular servicing will ensure the engine operates at its most efficient. Just doing the basics, like changing oil, air filter and spark plugs each year, will make sure the engine isn’t working any harder than it needs to.

Sure, an annual visit to the dealership or mechanic can be costly but consider it as a preventative measure against potential long-term damage, which could become expensive.

But there’s one simple thing you can do for free that could to save you money: make sure your tyres have the correct air pressure. Tyres with low pressure create more drag on the vehicle, and therefore the engine has to work harder and use more fuel.

Having your tyres inflated to the recommended pressure not only improves fuel economy but creates less wear (which means they won’t need to be replaced as quickly) while also ensuring the car is more dynamic, which means it can stop or turn quicker in an emergency situation to avoid a potential accident.

While there are plenty of options to alter your day-to-day stuff, it doesn’t seem like there are many ways to save on big annual costs like vehicle registration.

But there are a few you might not know about.

If you drive an electric vehicle, there are numerous government incentives across Australia that are designed to encourage a greater uptake of EVs, including discounted registration fees in some states, as well as rebates on the purchase price for eligible vehicles.

In New South Wales, all drivers (other than those who drive heavy vehicles) are eligible to claim a 40 per cent rebate (up to a maximum of $802) on toll charges if they spend more than $402 per annum.

There is also a 50 per cent discount for licence renewal fees for drivers with an unblemished driving record for the past five years, as well as rebates for first- and second-year apprentices registered with the NSW Department of Education and free registration and licence renewal fees for eligible pensioners.

Similarly, in most other states of Australia, pensioners, veterans, and those with a Health Care Card can receive discounted or free registration.

You can also potentially claim car-related costs on your annual tax return if the vehicle is used for work-related purposes. Talk to an accountant, tax advisor or financial expert for any assistance on this subject.

And then there’s insurance, which can provide big savings if you choose the right provider.

Car insurance is generally one of those ‘set-and-forget’ annual bills, but not all insurance providers are created equal or offer enough flexibility to suit your needs.

Before your insurance policy comes up for renewal, do some research and collect a number of quotes from a variety of providers. Shopping around is free and can save you money.

Bingle has won the Canstar award for Outstanding Value Car Insurance 2020-2023 and offers car insurance without the pumped-up price. As an online only provider, Bingle keeps overheads low, so savings can be passed onto its consumers. Yet, being part of the Suncorp Network, it has access to one of the country’s largest repair networks.

Bingle keeps insurance simple so that their customers only pay for what they need. Being online only means customers have the flexibility to manage their policy at the time that best suits them.

Lastly, the biggest cost in owning a vehicle is depreciation; the value of the vehicle when you decide to sell and upgrade.

Choosing a brand that has a solid reputation for long-term reliability could lead to good demand on the used-car market.

Secondly, choose a type of car that will likely remain popular over time, such as an SUV or a dual-cab ute. And pick a colour that isn’t too fashionable as it might not be as popular in years to come.

A vehicle that is well maintained, with a proper servicing history and low mileage, will likely be worth more than a similar car that hasn’t been maintained and driven more often.

Finally, cleaning your car regularly will ensure the paintwork and interior trim retains its lustre and will be more appealing on the second-hand market.

So, there you go, six simple ways to ward off the cost-of-living crisis and save money on your car.

Car cost-saving checklist

Insurance issued by AAL Limited ABN 48 005 297 807 trading as Bingle Insurance. Read the Product Disclosure Statement before buying this insurance. Go to bingle.com.au for a copy. Target Market Determination also available. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Subject to any rights you may have under any law AAI Limited does not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.

Sponsored by Bingle, which offers affordable car insurance without the pumped-up price. To find out more about third-party and comprehensive insurance, visit the Bingle website today.