How to Lower the True Cost of Owning a Car

The sticker price is only the start. The total cost of owning a car includes insurance, fuel, maintenance, repairs, registration, financing and the value it loses over time.

Re-shop your car insurance

Car insurance averaged about $2,237 a year for full coverage in mid-2026, according to Insurify. Comparing quotes at renewal is one of the fastest ways to save. See our car insurance savings guide.

Lower your loan rate

If your credit has improved since you bought your car, refinancing could lower your interest rate and monthly payment. Credit unions often offer competitive auto loan rates. Watch out for extending the term too far; a lower payment over more years can cost more in total.

New tax break: If you bought a new, U.S.-assembled car for personal use with a loan taken out after 2024, you may be able to deduct up to $10,000 a year in loan interest through 2028, subject to income limits. Read about the new tax deductions.

Keep up with maintenance

Following your car’s maintenance schedule (oil changes, tire rotations, brake checks) prevents small problems from turning into expensive repairs.

• Compare prices between dealerships and independent shops for routine work.
• Learn simple tasks like replacing wiper blades and air filters yourself.
• Ask for an estimate in writing before any repair.

Keep your car longer

A car loses much of its value in the first few years. Driving a reliable car for 8 to 10 years or more, and enjoying years without a car payment, is one of the biggest ways to save.

Buy smart when it’s time

• Consider a certified pre-owned car that’s a few years old.
• Get pre-approved for financing before you go to the dealer.
• Negotiate the total price, not just the monthly payment.
• Skip add-ons like paint protection or extended warranties unless you’ve researched them.

Cut fuel costs

With gas prices high, efficient driving and comparing prices at the pump matter. Our gas savings guide has more tips.