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Gas prices can vary week to week, but many drivers often face more significant costs when it comes to overall vehicle ownership and fuel expenses. Fortunately, there are several effective strategies to help cut these costs. Although you can’t control gas prices, you can take steps to reduce your total expenses.
Here are some actionable ways drivers can save up to **$244** per month.
1. Refinance Your Auto Loan to Lower Monthly Payments
Your monthly car payment is likely one of your biggest expenses, but refinancing your auto loan could lighten your financial load. According to data from Caribou, drivers have found significant savings through refinancing. For instance, diesel vehicle owners reportedly save around **$244** a month, while gas-powered vehicle owners see average savings of **$149**. Pickup truck drivers can save approximately **$177** monthly.
“If your credit score has improved or you secured a loan with limited options initially, refinancing can yield substantial savings,” explains Simon Goodall, CEO of Caribou. Importantly, these monthly savings can outweigh reductions in your gas spending.
2. Avoid Premium Gas If Your Vehicle Doesn’t Require It
Before filling up, it’s wise to check the octane requirements of your vehicle. “In our case, we only use the minimum octane required, avoiding the extra cost for premium fuel unless absolutely necessary,” Goodall advises. Switching to a lower octane can lead to substantial savings over time.
3. Compare Local Gas Prices Before Refueling
Opting for the nearest gas station may not always be your best bet. To avoid overspending, it’s essential to compare gas prices in your area. Goodall notes, “I actively monitor prices to ensure I’m getting the best deal.” Leverage apps like GasBuddy or use Waze to find the cheapest gas stations along your route.
4. Use Warehouse Club Gas Stations for Cheaper Fuel
While there is a membership fee associated with warehouse clubs, the savings on gas can often offset these costs. Goodall shares, “Buying gas at Costco has saved my family a considerable amount.” This can be especially true for households with multiple vehicles, making it worthwhile to consider a membership.
5. Prepare for Unexpected Repairs
Unexpected vehicle repairs can derail your budget. To mitigate this risk, consider investing in an extended warranty, particularly before your car ages significantly. Goodall suggests, “If you plan on keeping your vehicle long-term, an extended warranty can help stabilize your transportation expenses.”
