How to save money on a car

This is what they don’t want you to know – how to save big on a new or used car and those all important running costs.

Buying and running a car is one of the household’s biggest expenses.

Here are some tips and tricks to reduce the cost of car life, from buying smarter to reducing fuel and service costs.

Buy smarter, not flasher

Tempted by that Mercedes, Lexus or Porsche? Of course you are. But can you really afford one?

Prestige cars are pricier to purchase or lease, making monthly repayments far higher. Obvious stuff, but think depreciation, too. A $100,000 car shedding half its value over five years stings a lot more than a $30,000 one dropping by 50 per cent.

Premium brand servicing and spare parts are typically higher than mainstream brands (sometimes by a lot), as is insuring one.

HOT TIP: Buy a humbler brand such as Kia or Hyundai and pick the top grade model. Its features and cabin luxury can rival prestige marques.

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Go for a top grade model with the more humble brands.

Wait for new car deals before buying

If a car model’s not meeting sales expectations, factory-backed deals follow – think drive-away offers, cashback, cheap finance or free servicing.

Dealerships and sales staff usually have monthly, quarterly or annual sales targets, so car shopping at the ends of those periods and haggling hard can reap rewards.

End of financial Year deals are typically abundant. Prove you’ve got the means and are willing to buy, then stand firm with your offer. Dealers want to sell.

And skip paint protection and window tinting. To save dollars, organise this yourself if you deem it necessary.

HOT TIP: Visit thebeep.com.au for a list of current new car offers and deals.

Save thousands on ex-demo vehicles

Slow-selling brand new cars are often dressed up as dealer ex-demos, yet have only delivery kilometres on the clock. Ex-demos that have driven a few thousand km are still practically new cars.

Search carsales.com.au and look under the New/Used tag, then choose “Demo & Near New” under the “Condition” tag.

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Youi can save plenty with ex-demo models. 2024 Skoda Fabia Select. Photo: Thomas Wielecki

For example, a 2024 model year Skoda Fabia Select showing just 1500km is at a Queensland dealer for $26,990 drive-away, next to a list price of $32,390.

HOT TIP: Ex-demo vehicles don’t have full new car warranties. The warranty started when the dealer first road registered it.

Try selling privately, not through a trade-in or car wholesaler

Trade-ins or using an “instant buy” wholesaler is quick and convenient, but you won’t get near market value for your car.

Selling privately may feel confronting, but clean your car properly, photograph it well, do a quick phone video, get a roadworthy and price it realistically and you’ll likely get more genuine buyers than tyre kickers.

Check out Carsales, Gumtree and Marketplace to gauge asking prices for cars similar to yours, and price yours realistically on one or all of the above.

HOT TIP: There are numerous online advice articles about safely selling your car privately.

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Try selling privately.

You don’t have to service through a main dealer

Brands such as Mitsubishi and Nissan offer a 10 year warranty, but only if logbook services are done at authorised dealers.

While that makes servicing within the dealer network a good idea, it’s often cheaper to service using an independent workshop. Your car’s warranty remains intact as long as the workshop’s licensed and use correct parts and fluids demanded by the manufacturer.

Capped price services at dealers can be excellent value, especially brands such as Toyota and Honda.

HOT TIP: Try using a marque specialist when servicing your car. They’ll be true brand experts and can diagnose common problems immediately.

Cut fuel bills

Use websites such as petrolspy.com.au and fuelprice.io to see your area’s cheapest fuel in real time.

Use supermarket coupons, and download the My 7-Eleven app to lock-in the best local fuel price for up to seven days, saving up to 25 cents per litre.

Fill up when wildly fluctuating prices are low.

Help your car be more fuel efficient. Ensure it’s been serviced, tyres are at the correct pressure, remove roof racks and any excess weight from the boot and cabin, and don’t drive aggressively. All will chew the fuel.

HOT TIP: The fuel price cycle is real. Brim the tank when prices are low.

Shop around for insurance

Use websites such as comparethemarket.com.au and canstar.com.au to get car insurance quotes from numerous providers.

Get quotes when your insurance is up for renewal each year. They typically reward new customers with lower prices, rather than loyal customers rolling over from last year, so play the field.

For more savings, pay your premium annually not monthly, stipulate limits (such as no drivers under 25), increase your excess, or agree an annual mileage limit.

HOT TIP: Considering an electric car? Get insurance quotes first as they’re often higher than petrol or diesel vehicles.

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Shop around for insurance. Picture: Mark Bean

QUICKFIRE TIPS:

Own a second car?

Do you really need one? Total up annual bills and depreciation, and maybe your family could manage with one car to save megabucks.

Tyres soon need replacing?

There are often “buy three get one free” deals on quality tyre brands. Don’t buy cheap tyres, it’s false economy.

How’s your parking and toll road costs?

Perhaps park for free further out and walk or cycle the last part? Swerve toll roads by driving during less busy periods if possible.

Be loyal to your car and keep it for several years. Depreciation is usually the biggest car cost. Buying or leasing every three years means you’re suffering the maximum dollar depreciation hit.

Originally published as How to save money on a car