6 Cheapest Ways To Lower Car Costs This Month (Without Switching Cars)
If you or someone you know has recently bought a new car, you probably know just how expensive it’s become. According to a recent Edmunds survey, the average monthly car loan payment reached an all-time high of $773 in Q1 2026. For many Americans, buying a new car is quickly becoming unaffordable.
If you’re finding this out the hard way, there are steps you can take this month to lower your car costs without having to sell your car.
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Shop Around for Car Insurance
One of the easiest ways to reduce your overall cost of car ownership is to periodically compare car insurance rates. Unfortunately, many people go years without shopping around and some never do. With insurance premiums rising every year, loyalty to a single insurer could be costing you hundreds of dollars.
Insurers regularly update their pricing models, so it’s wise to get quotes once a year. Start with three different companies and compare rates for similar coverage amounts. Additionally, raising your deductible and bundling coverages can help reduce your premiums.
Cut Fuel Costs With Smarter Driving Habits
With gas prices at multi-year highs, it’s crucial to adopt smart driving habits to boost your fuel economy. Aggressive driving can increase how much gas you’re using, costing you more money.
Start by building good driving habits, such as slower acceleration, using cruise control on the highway, reducing idle time and maintaining a reasonable speed. These practices can all help increase your fuel economy.
Check Tire Pressure Regularly
If your car doesn’t come with a tire pressure monitoring system, make it a habit to check the pressure regularly. This can be done at home with a tire pressure gauge or at the gas station when you fill up.
Not only do underinflated tires wear out faster, but they also reduce your gas mileage. Most cars have the recommended tire pressure printed on the driver's-side door. If your tires are low, many gas stations offer free air.
Stay Current on Basic Maintenance
Basic maintenance for your car is one of the best ways to minimize the risk of something serious and costly happening to your car. Make sure you’re having the oil changed regularly, as well as getting a new air filter, brake inspection and battery test. These regular maintenance tasks can help improve gas mileage and reduce the chance of a breakdown.
Refinance Your Auto Loan
Depending on when you got your car loan, interest rates may have dropped. If so, refinancing your loan could lower your monthly payment. If your credit score has improved since you purchased your car, you may qualify for better interest rates.
When considering refinancing your auto loan, compare rates from three lenders. But you’ll also want to look beyond the rate offered. Make sure there are no hidden fees that could make the loan more expensive than expected.
Cancel Add-Ons You Don’t Need
If you purchased any extras from the dealership, they could be quietly costing you money each month. This includes things like extended warranties, satellite radio subscriptions and roadside assistance packages. Consider whether these still provide you with value. If not, you can cancel to save money each month.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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