Five Smart Car Tips to Help Drivers Save Money

In 2025, the average cost of a new car passed $50,000 for the first time in history, according to Kelley Blue Book (KBB).

As vehicle prices skyrocket, and nearly every other cost involved with driving goes up, vehicle owners are left in a tough spot. Taking a road trip and putting extra wear and tear on your car can feel like a luxury these days.

So how can you save money on your car expenses and avoid spending a fortune on a new vehicle? The NFCC recommends taking great care of your current car, so you can get as much use out of it as possible. Then, when it’s time to find a replacement, look for a reliable used vehicle. Here are some tips for saving money in the process.

1. Look for local deals on gas

You can use apps like GasBuddy or follow your local news to find the lowest gas prices in your area. Just make sure you don’t have to drive too far out of your way to find a lower price, since that can end up costing you more than you save. 

On top of that, check to see if your engine calls for regular fuel. If so, there’s no need to spend extra money on premium.

For more fuel savings, look for grocers or warehouse clubs that offer gas discounts to customers. For example, if you have a Kroger Card, you can earn one Fuel Point for every dollar you spend. 

You might also consider using a rewards credit card that gives you cash back on gas purchases. Just make sure you avoid using the credit card to buy anything you can’t pay off within 30 days. If you fail to pay off the full balance by the monthly due date, you could end up with interest charges of nearly 30% APR.

2. Follow your car’s maintenance schedule

The average car on the road is now almost 13 years old, and many cars are now built to last well beyond the 200,000-mile mark.

However, the number of miles you can drive your car depends heavily on how well you maintain the vehicle. One of the best ways to make your car last longer and improve your gas mileage is to follow the manufacturer’s recommended maintenance schedule.

You can find this information in your copy of the owner’s manual or by searching for the digital version of the manual online. When you look at the recommended maintenance schedule, you’ll see the maintenance that’s suggested after every 30,000 miles or more of driving under normal conditions. This includes schedules for the following:

• Oil and filter changes
• Fluid inspections
• Wiper blade replacements
• Tire rotations
• Wheel alignment
• Spark plug replacement

You might be tempted to save money by skipping out on these services. But if you do, expect to pay even more for gas and auto repairs overall. You’ll also need to replace your car sooner. 

3. Calculate the true cost of owning your car

There’s a good chance your car is costing you more money than you think. For car owners, understanding how much you’re really spending can help you see if it’s time to downsize or sell the car for something more budget-friendly. 

To find out how much your car is costing you, make a list of the following expenses:

• Car payment
• Insurance
• Gas
• Maintenance
• Registration
• Tolls and parking

If you want to compare costs between one vehicle and another, you can use the comparison tools at KBB or Edmunds, or run the numbers by using the U.S. Department of Energy’s Vehicle Cost Calculator. 

4. Use smart car-buying tips

When you’re preparing to buy a car, some research and planning can lead to major savings. 

Instead of simply going for the flashiest new vehicle, we always recommend buying a reliable used car that’s at least three years old. Why? Because cars lose around half of their value within the first three years. So buying a vehicle that’s a few years old can mean major savings.

On top of that, be sure to compare gas mileage. According to FuelEconomy.gov, if fuel costs $3.12 per gallon, you can save $3,900 in five years by purchasing a car that gets 30 MPG versus just 20 MPG. 

5. Find the most affordable loan

What’s the best way to finance a car? If you need a loan to make your car purchase, there are a handful of ways to get the best, most affordable deal possible.

First, take a look at your credit reports before you consider visiting a car dealership. It can take months to make significant improvements to your credit, such as disputing and removing errors, so you’ll want to start early.

Then, even if your credit scores aren’t great, you can save money by comparing multiple loan offers. We recommend comparing offers from at least three different credit unions in order to find the lowest rates and fees you qualify for. 

Finally, determine your affordable sales price and monthly car payment, before you start shopping around for cars. Unfortunately, many people will fall in love with a car, and then try to justify spending whatever amount it takes to make the purchase. But going in that order can get you into financial trouble and even lead to vehicle repossession if you fall behind on payments.

As a general rule, we don’t recommend taking on car loans that take longer than four to five years to repay. The longer your repayment term, the more money you’ll end up spending on interest charges. If you can’t afford the monthly payments on a five-year car loan, that means the car is too expensive for you.

Get expert help managing car costs

Still looking for ways to save money or find an affordable car? An NFCC-certified credit counselor can help. Our counselors can meet with you by phone, online or in-person to help you come up with a budget, review your credit, and answer any questions you have about car loans and car buying!