I have struggled to get into the frugal mindset in all aspects of my life. Occasionally, it’s just easier to stop at the gas station closer to my house rather than drive another half mile to the other one with cheaper gas. However, the place where I see it is the toughest to get into the frugal mindset is your automobile. Americans are stuck in the car payment rut. we also think generally that a car with 100,000 miles on it needs to be traded in. Cars are where there is a huge opportunity to save money in your budget. I have some tips:

• Establish a relationship with an oil change establishment that has a rewards program or mailed coupon program for repeat customers. (Or even better, change your oil yourself if you are so inclined)
• Maintain your car and factor in the expense to keep it running for a long time. At 90,000 miles, make the decision to invest some money in it to keep it running all the way to 180,000. Resist the urge to go along with the American addiction for new cars.
• Make opportunistic purchases of vehicles. A friend of ours waited until gas was the highest to go buy the used vehicle that fit his family’s needs. They needed a big SUV for their large family. When gasoline was at $3.30 a gallon, the salesmen would do literally anything to get a used Toyota Sequoia off their lot. Our friend not only got the vehicle for less than market value, but also negotiated some maintenance for free.
• Get rid of your loan. Make extra payments. There are two types of people in the world: (1) Those who pay interest and (2) Those who collect interest. Be the person who collects interest.

See this link for additional ideas on 13 Frugal Ways To Save on Car Ownership.

We have been thinking a lot lately about our automobile situation. While there are big cost savings in driving older cars, there are costs. Our 2000 Toyota Sienna has 145,000 miles on it and there are a number of things that simply must be done to keep this car on the road. Toyotas have exemplary reputations for staying on the road, but with proper maintenance. When considering our van, we realized that we will need a number of things done at this point: timing belt, water pump, external drive belts, transmission fluid, and tire rotation. The driver side door also needs a part replaced. It looks like our car will cost us around $1,200 in total maintenance costs in 2009 (oil changes included). We thought about buying a new car. However, what it came down to was that new cars must be maintained as well, but they have payments or significant upfront costs (if buying in cash). Sure, we could drive around a 2010 Toyota Sienna van, but it would likely cost us $400 a month ($3200/year) in loan payments and would still have maintenance costs. This is not including the increased insurance costs.

What it really comes down to is this – can you stand driving an older car? Do you believe in it? Can you defend your “clunker” at your next family get-together or social gathering and feel good about it? After careful consideration, we decided that we believe in driving older cars. It just makes sense to use something that still works just fine and costs much less than a new car. A new car is simply a luxury. We have three children and it just doesn’t work out for us.