A car’s price tag may say $5,000, but the actual costs of owning a car can be much higher. Avoid getting mired in debt by taking a few smart actions.

Car Insurance

You’re required to have it, but doesn’t it make sense to save a few bucks where possible?

• Perform well in school. Many insurance companies reduce premiums for students with above-average grades or high classrankings.
• Drive safely. Accidents and tickets make your insurance premium go up, while a good driving record may reduce your premium.
• Research discounts. Insurance companies offer discounts for a number of reasons, including good credit history, military service, and bundled insurance (buying more than one type of policy from the same insurer; for instance, auto insurance plus home or renter’s insurance). Shop around and ask if you qualify for any of these savings.

Maintenance

Take care of your car to prevent premature repairs and deterioration.

• Wash it yourself. Professional car washes may be more convenient, but they make a dent in your wallet. Grab some soap, a pail, and a hose and do it yourself. If you don’t have access to an outdoor faucet, search out a low-cost self-wash place in your area.
• Get routine maintenance but be cautious about agreeing to larger repairs. Listen to advice from car mechanics, but make smart decisions before giving them the green light. This helps to ensure that you don’t get ripped off. Some services that mechanics offer—like replacing air filters and windshield wipers—can be done yourself. There are plenty of online videos that walk you through the steps of routine maintenance tasks. It may take a little time and effort to do the jobs yourself, but the savings can be worth it. Check your owner’s manual for a schedule of recommended maintenance and to learn the recommended mileage between oil changes. Another option: Barter with someone who’s knowledgeable about cars.

Smart Use

Plan your car use to reduce costs.

• Car pool. Owning a car doesn’t have to mean you’re automatically the chauffeur for your family and friends. Trade rides and have everyone chip in for gas.
• Drive sparingly. Use your car only when necessary. If your destination is a short distance away, walk or bike instead.
• Buy the least expensive gas. Check your car manual for the recommended gas grade level for your car and stick to it. Research the gas stations in your area to find the best deal. Some offer discounts if you possess their customer loyalty card. Typically, these cards are free, and the savings can add up.
• Find cheap parking. If you can’t find free parking, seek out lowest-cost parking lots or meters. Always pay the required parking fees so you don’t get stuck with fines or tickets. If you frequently park in the same area, check to see if nearby parking lots offer long-term rates or discounted parking passes.