Fuel, insurance, registration, servicing, repairs, tyres – the costs of car ownership really begins to stack up when you consider just how many car-related expenses you make every week. In fact, it’s no surprise that on average, running a car each year can cost thousands. 

However, there are a few things you can do to actually lower your car ownership costs over the long term – and spoiler alert, one of them is making the switch to electric cars! We’ll be sharing just some of these spend-savvy tactics for cheaper car ownership below, so read on to learn how you can reduce the strain that your automotive or beloved family mover may be putting on your back pocket. 

Compare Car Insurance Providers

You don't want to drive uninsured. Even if you're the most careful driver around, you want to be covered in case someone crashes into you without their own insurance policy. Thankfully, there are a few different types of car insurance for car owners to select from nowadays, and doing your due diligence when shopping around for a suitable policy may help you save some serious money in the long run.  

Consider whether you’ll require third-party, third-party fire and theft, or a comprehensive car insurance policy. Each of these are more expensive than the next, but if you’re driving a secondhand vehicle or even a vehicle that has an abundance of parts available, you may be able to save on your insurance by switching from a comprehensive policy to simpler third-party coverage. Just make sure you’re thoroughly aware of the policy coverage you may be sacrificing by switching to third-party. For instance, you won’t be able to make an insurance claim for any damage to your vehicle in the event of an accident, as third-party policies only cover damage to third-party property – hence the name of this policy type.

If you are looking to shop around for a cheaper policy, the best time to do this is when your current policy is up for renewal, as most companies will increase their policy costs at this time. However, you can call up your insurance provider to see if they could perhaps offer you a lower premium. 

You should also compare the offer with new providers, as insurance companies always want customers and will offer discounts for new sign-ups. Use a free online comparison tool or call up and get a quote from a new company, and you could save hundreds a year on your insurance policy.

Regular Maintenance

One way you can save money on expensive repairs to your vehicle is by simply staying on top of your car’s servicing and maintenance requirements. Keeping to a regular servicing and maintenance schedule will keep your car in excellent working order. 

Alongside this, maintaining a proactive approach to your car servicing will undoubtedly help to prevent significant problems with your engine, transmission, and suspension, all of which are prone to wear and tear over the lifetime of the vehicle. These parts of your car tend to be incredibly costly to fix, and any such issues could result in a repair bill in the thousands. 

As a rule of thumb, you should service your car every six months, or 10,000 kilometres travelled – whichever comes first. Be sure to work with your mechanic to make sure your car is being serviced promptly.

Keep an Eye out for Cheaper Fuel

Along with insurance, fuel is another significant ongoing expense for most car owners, apart from those who are lucky enough to have company cars. Most people fill up once a week or once a fortnight, and depending on the size of your vehicle's petrol tank, this can range from $70-100 dollars a pop, depending on the price at the bowser. 

It's definitely worth keeping an eye on your local fuel prices by using an app like Petrol Spy or using certain fuel retailers' phone apps that offer price lock offers, so you can lock in cheaper fuel for when you need to fill up. It's also worth paying attention to the fuel price cycle, as fuel prices tend to rise closer to the weekend or before a long weekend or holiday period. Fuel price watchers have stated that filling up on Wednesdays are actually the best day of the week to buy petrol. 

Switch to an Electric Vehicle

An electric vehicle, or EV for short, tends to use an electric motor, which is powered by a Lithium-Ion rechargeable battery pack that powers the car during acceleration and maintaining speed. 

Depending on the type of EV, the electric motor will either complement a conventional fuel-powered engine, as is the case for a hybrid or plug-in hybrid, or it can even power the car without the need for fossil fuels such as petrol or diesel. This is when the car is fully electric. Whatever the type of EV, this means fewer emissions into the atmosphere, which is, of course, beneficial for the environment.

However, environmental benefits aside, pure electric vehicles are also cheaper to run than traditional fuel-powered vehicles due to the fact that they don't require any fuel or lubricants (like oil) in order for them to run. You could save a lot of money on fuel throughout the year by switching to an EV. However, you need to factor in the upfront cost to purchase one or the finance repayments over time, which should factor into your decision-making.

Thankfully, Australia’s EV market has really begun to boom over the past few years in particular, with more models available every fiscal year. With just a little bit of preliminary research, you should be able to find some brand new or even secondhand EVs that fit your lifestyle and help cut your annual petrol costs down substantially – alongside reducing your personal and household carbon footprint as well.

Keeping Your Car Ownership Costs Low in the Long Term

From staying strategic with your car insurance and petrol station visits, to swapping out your gas guzzler for a greener automobile, keeping your car ownership costs will naturally require some critical thinking and plenty of adaptability. But so long as you continue assessing your car ownership costs regularly, you should be able to make some changes that reduce your total annual automotive spend from fiscal year to fiscal year.