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Motoring
Drive safely and economically to save on fuel
Consider where you park to save on costs
Money saving tips to help cut the costs of owning a car
Follow these easy, practical money saving tips to cut fuel, maintenance and running costs for cars in Victoria.
Transport costs account for 16.5 per cent of household budgets in Melbourne, according to the Australian Automobile Association (AAA), equating to $535.81 per week or more than $27,000 per year.
With that in mind, many Victorian households look for ways to reduce the cost of owning a car.
RACV Motoring Editor Andrea Matthews says simple measures such as being aware of your driving behaviour and being proactive with car maintenance can result in savings in the long run.
From regular servicing to fuel savings, here are some simple ways to save on car running costs and avoid costly repairs.
RACV Members can manage products and services, and save on everyday purchases with the RACV App.
How to reduce car running costs
The best fuel saving tips to cut down costs
Track the fuel cycle
The price of fuel can be cyclical, with prices increasing for a period before lowering again. This is known as the fuel cycle, where petrol prices can appear to spike and fluctuate. Some of these price changes are based on external factors like oil prices, retailer competition, government taxes and global events.
A typical fuel cycle lasts four to six weeks, so if you’re filling up during this time, try to utilise discounts or just top up rather than filling your tank to the brim, until prices drop again.
RACV Members can save on fuel and EV charging via the free RACV App.
Use the RACV App to find the cheapest petrol near you
The RACV App's fuel finder feature lets you search for the closest and cheapest petrol near you in real time when you need to fill up.
You can also access this information through the Fuel Tracker page on the RACV website, which provides updates on Melbourne’s fuel price trends, daily average fuel prices, and what prices are like in your local area.
Choose the correct fuel type to save money
Always use the best quality fuel available. You may think your car is running OK on cheaper 91 RON (Research Octane Number) petrol, but if a manufacturer specifies 95 RON then you should use it.
If your vehicle states it needs 95 RON, you should only use that,” Matthews says.
“Long term use of 91 RON fuel in a premium engine may cause significant engine damage and end up costing a lot more down the track.”
Related: Everything you need to know about car fuel types and which is best for you.
Using tools like the RACV App can help you save money by finding the cheapest fuel in your area.
Essential maintenance tips to lower car costs
Service your car regularly
Regular car maintenance can have a dramatic impact on your vehicle’s fuel economy compared with a car that has been neglected. Matthews advises that regular servicing avoids bigger costs later.
“Don’t ignore that niggling engine light,” she says. “It may be indicating a running issue that could cause the excessive use of oil or fuel. Or it may be indicating an issue that’s going to worsen over time.”
Read more: Your car's dashboard lights and symbols, explained.
She also recommends servicing your vehicle according to the manufacturer’s recommendations at an accredited auto car centre to avoid missing critical servicing intervals.
“A car service should include a full inspection, which can identify any issues that may need to be addressed,” says Matthews.
“Faulty components can cause a car to run poorly, cause excessive tyre wear, wear on other components or poor fuel consumption. All of which can be more costly in the long run.”
Maintain recommended tyre pressure
Make sure your tyres are the best ones for your car and kept at the recommended pressure, according to the owner's manual. An underinflated tyre creates more drag on the road, which increases fuel use.
“Having the correct tyre pressure ensures your tyres do not wear prematurely and you get the maximum life from them,” says Matthews.
“Underinflated tyres will wear earlier on the edges and will increase the rolling resistance of the tyre – contributing to engine wear and higher fuel consumption.”
Properly inflated tyres also keep you safe on the road. Low tyre pressure can cause erratic wear and tear, which can lead to tyre failure and expensive replacements.
Maintain proper wheel alignment for longer tyre life
When you check your tyres, it’s a good idea to check the wheel alignment too.
“Getting a regular wheel alignment check will ensure your tyres last as long as possible,” says Matthews.
“A poor alignment can cause premature wear, meaning you will need to pay to replace your tyres more frequently than needed.”
Lighten the load to save fuel
Don’t use your car to store goods and other heavy items unnecessarily.
While items, such as an emergency car kit, are important, you shouldn’t use your car for storage. Consider clearing out your boot when washing your vehicle.
Read more: How to wash, clean and detail your car like a professional.
The heavier your car, the harder the engine needs to work, resulting in a higher consumption of fuel. Think about lightening the load for everyday use.
Remove roof racks when not in use
While handy, roof racks can create wind drag, particularly if there's a heavy load and/or additional height to the vehicle. This increases fuel use and your costs.
“To keep costs down, remove the roof rack when it's not in use," Matthews advises."When in use, pack it low and light." This is particularly important when driving an EV as it will impact range.
Ensure the roof rack is well maintained and fitted correctly to avoid movement that increases drag. Keep the windows and sunroof closed to help improve the car’s aerodynamic performance, and overall fuel efficiency.
Read more: How to choose the right roof rack for your car.
Does your car match your lifestyle?
Your choice of vehicle and its fuel type can have a huge bearing on managing your motoring budget, and you could save hundreds of dollars by making a more informed choice, Matthews says.
“Take a look at the car you’re driving or thinking of buying and ask yourself if it is fit for the kind of driving you’re doing. Driving around in a large car can be a real drain on the household budget.
“If your household is smaller, do you still need that large 4x4, or would a small hybrid car be a better option? Not only would you save on rego and fuel costs, but servicing costs too.
“Would an EV or plug-in hybrid be a better fit for you? If you’ve recently had solar panels and a household battery installed, an electric vehicle immediately makes more sense – you can literally charge it for free, and maintenance costs can be less too”
Read More: What to consider when downsizing your car
Using a resource like RACV Car Match can give you all the critical running cost data you need to plan your vehicle budget. It lets you shortlist and compare different makes, models and fuel type so you can get a view of potential running costs, including finance repayments.
Research and compare hybrid and plug-in hybrid cars, SUVs and utes
Don't store excess luggage in your vehicle, as this can cause you to use more fuel than necessary.
Adopt driving habits that can save money
Drive safely and economically to save on fuel
You may not realise it, but following the road rules and safe driving practices “can help you maximise fuel usage,” says Matthews.
Maintaining the legal driving speed is not only safer, but reduces wear and tear on your brakes and tyres, lowering overall transport costs.
Rapid acceleration and hard braking increase fuel consumption, so drive smoothly and keep a steady speed to get the most from a tank of petrol.
If you’re driving an automatic, ease back slightly on the accelerator once the car has reached sufficient speed. In a manual, use the gearbox sensibly, and change up through the gears as soon as practical.
Use cruise control to improve fuel efficiency
Cruise control maintains your speed, so you’re not slowing down then accelerating again, which uses more fuel.
“Heavy throttle use and excessive acceleration are a guaranteed way of using fuel or range,” says Matthews.
“Using adaptive cruise control, where the car maintains a safe distance from the vehicle in front, can improve fuel efficiency, as the vehicle in front is doing the hard work of breaking through the air, and may get the benefit of a slipstream.”
If your car has the option, utilise cruise control to save on fuel costs on freeways or long distances at a singular speed.
Read more: The best car safety systems and features in modern vehicles.
Be mindful of your air conditioning use
In a conventional petrol or diesel vehicle, air conditioning (A/C) can place an extra load on the engine, thus increasing fuel consumption.
“One way of maximising the operation of the A/C system is to regularly replace the vehicle cabin filters that stop pollen and dirt entering the cabin,” Matthews says.
Additionally, when you get in a hot car, open the windows to let the hot air out first, then close the windows and turn the A/C on to recirculate, as a way of reducing fuel consumption.
That way, you're cooling the same air from inside repeatedly for less money, instead of drawing in hot air from outside.
Using alternative and active forms of transport where practical can help save on car running costs such as fuel.
Learn how to avoid or reduce extra car costs like tolls, rego and parking
Consider where you park to save on costs
Car parking can be expensive, particularly if you drive to work in the city.
Leaving your car on the city fringe then catching a train, tram, or walking to work could save you money on parking costs, which add up over a year.
If parking on the street, make sure you understand any relevant parking signs and restrictions in place to avoid a costly fine.
Apply for rego concessions
Certain Victorian residents and vehicles are eligible for discounts on their annual car registration fees. This includes current and former Australian Defence Force (ADF) members, certain trades apprentices, primary producers (e.g. farmers), charitable institutions, vehicles modified for disabilities, and residents who are eligible for health care and pension concessions through Centrelink.
Visit VicRoads to find out more and apply.
Refinance your car loans
Car loan repayments are the single biggest contributor to household transport costs according to the AAA, accounting for an averageof 40 to 49 per cent of weekly transport expenditure.
Depending on your loan and lender, you may be able to get a better deal with another loan provider.
Find out more about new and used car loans with RACV.
Avoid toll roads if practical
Toll roads can be more convenient, but if you have time you may be able to take a less costly route.
Leaving home earlier, avoiding peak-hour traffic and planning your journey are all ways you can avoid tolls and save on your overall driving costs.
Try alternative transport
Take public transport to save on car costs
Rather than spending on fuel, tolls, parking, and maintenance, consider taking public transport. This can be a cheaper option, whether you're commuting to work, meeting friends in the city, or having a weekend getaway.
It can save you money and sometimes the journey is quicker too.
Swap the car for a bicycle
Cycling instead of driving has cost-saving and health benefits.
Whether you’re thinking about commuting to work, getting an electric bike or having a family outing, a bike ride is a great way to save on commuting costs.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
