Rolling on a Budget: Financial Tips for the Modern Car Enthusiast

The age-old problem of the car enthusiast who loves driving but hates spending money.

Cars are expensive. Insurance is painful. Repairs cost more than expected and fuel prices only go up. Sometimes it feels like throwing hard-earned money into a giant paper shredder.

But here’s the good news: it doesn’t have to be that way. Rolling on a budget is possible with some smart financial planning and credit knowledge.

With that in mind…

Let’s Talk About Cars And Money.

What you’re about to read:

How Good Credit Gives You More Financial Flexibility With Cars
The Hidden Costs of Car Ownership
Practical Car Ownership Tips To Keep You From Brokebbing Daily
Insurance Hacks To Save You Money

How Good Credit Gives You More Financial Flexibility With Cars

How often do you think about your credit score?

If you’re like most car enthusiasts you probably spend every waking moment researching parts, colours, models and aftermarket upgrades. You don’t sit there wondering how to increase your credit score so you can save money.

And that’s fine. Most people don’t. But it also doesn’t make sense either.

Here’s why…

Do you know how much cheaper car insurance is for people with good credit? Research from The Zebra found drivers with poor credit scores pay 114% more for car insurance than those with exceptional credit ratings.

That’s right. If you have poor credit you’re getting nickeled and dimed by insurance companies every month. That money could be going towards wheels, parts or next year’s track day.

Think about it.

Two drivers. Same make/model car. Same driving history. But one has bad credit.

Which one do you think is going to get the better deal on auto insurance?

Hint: it’s not the one with the sub-par credit history.

Driving with good credit will always lower your overall ownership costs. Take the time to improve your credit score before shopping around for the best cheap auto insurance companies that reward good financial behaviour.

You’d be surprised how little it takes to raise your credit rating and unlock better interest rates.

Your future self who wants to buy a new car will thank you.

Credit is powerful. Use it to your advantage.

The Hidden Costs of Car Ownership

This might seem obvious, but the true cost of car ownership is much more than the car payment.

Maintaining and repairing your car costs you an average of $900 per year. Throw in insurance, fuel prices, registration fees and the occasional repair bill… and your new hobby gets expensive fast.

Add in speed bumps.

Things that aspiring car enthusiasts fail to account for. Like specialty tyres for track days. Performance parts that wear out faster. And what happens when your turbo dies during a weekend drive.

Yep. Car ownership is expensive for everyone. But if you’re tinkering on your car or taking it to the track… expect your monthly costs to increase even further.

Again… don’t let that discourage you. It just means you have to be smart about your finances if you don’t want to constantly Brokebb.

The tips below will show you how.

Practical Car Ownership Tips To Keep You From Brokebbing Daily

Tip #1 – Build A Dedicated Car Fund

Always have money set aside for car related expenses. It doesn’t have to be a lot.

Something as simple as a savings account that you “pay yourself” a few bucks every month. That way when the water pump dies or your clutch starts to slip… you’ve already got the money to cover repairs.

Tip #2 – DIY Maintenance

Want to save tons of money? Learn how to do your own car maintenance.

Oil changes, air filter replacements, brake pad swaps and topping off fluid levels are all beginner level mechanics work. Once you know how to do the basics… you’ll save hundreds on labour costs that can be spent elsewhere.

Tip #3 – Shop Around For Insurance

Speaking of saving money on your car…

Did you know that the majority of drivers overpay on auto insurance? Because they never bother to shop around.

Get into the habit of comparing rates from multiple insurance providers every year or two. Look into bundling your policies, increasing your deductibles and taking advantage of available discounts.

Tip #4 – Buy A Reliable Car

If you can’t afford to repair or replace your car every few years. Maybe don’t buy a car that will fall apart.

Some automobiles are more affordable to own than others. Japanese domestic market cars (primarily Honda and Toyota) are consistently ranked as the least expensive to maintain.

Not only will reliable vehicles save you money in the long-run. They also give you more cash to modify since you won’t have to worry about upgrading expensive repair shop parts.

Tip #5 – Be Smart With Mods and Upgrades

Sure. Swapping out parts and making your car faster is half the fun of car ownership.

But some modifications are smarter than others.

Priorities your upgrades based on safety, added protection and maximum performance. Brake pads, tires and lighting should always be the first mods you consider. Things that protect your car from rust and corrosion are another wise investment.

Cosmetic changes and engine tuning can always wait.

Insurance Hacks To Save You Money

Since car insurance was already covered above, this section is fully dedicated to keeping those costs as low as possible.

Here are a few things you can do beyond driving like a grandma and shopping around for the best rates.

Increase your deductible. The higher your deductible on an insurance policy the cheaper your monthly premiums will be.
Bundle your auto insurance with another policy. Ask your insurance agent about bundling discounts when you purchase home or renters insurance with your vehicle coverage.
Enthusiast discounts. Some companies will offer you better rates if you store your car in a garage or only drive it to the track once a month.
Stay out of tickets and wrecks. This one cannot be stressed enough. Accidents and traffic violations will raise your insurance costs significantly.

Drive Safe.