Owning a car is a huge expense right now — these 3 tools can help you save

Having a car is a big expense right now.

The price of gas has skyrocketed in recent months, with the national average for one gallon of regular gas reaching $4.39 on May 29, according to AAA, a 38.9% increase from the same date last year.

On top of that, higher interest rates, car prices and auto loan balances have led to increased payments: 19% of auto loans have payments of over $1,000 per month, according to data from Experian Automotive.

Then there are maintenance and car insurance costs, which are also up. Auto insurance prices have also increased by 18% in the past year, according to comparison site The Zebra.

CNBC Select highlights tools and tips to make maintaining and covering your car more affordable.

Extended car warranties can cover issues like transmission problems, engine malfunctions, and air conditioning and heat repairs, depending on the plan you choose. They kick in after your car's manufacturer warranty has expired, and can stay in place longer. An extended car warranty can be helpful if you're worried about affording the cost of an unexpected repair or maintenance.

Some plans can also include roadside assistance, helping you tow or jump start your car, and allow you to choose your repair shop.

These extended warranty plans tend to start at $40 a month, though prices can vary based on your car's make, model and mileage, as well as your location. That's just about $480 a year — less than the average $838 per year the average consumer spent on car repairs last year, according to Cox Automotive, the parent company of Kelley Blue Book.

We like Autopom since it includes 24/7 roadside assistance and trip interruption protection if you're far away from home. This brand also allows you to choose your auto repair shop.

CarShield is another top pick for those with older cars. It doesn't have an age limit on vehicles — like some of its competitors — and approves vehicles with up to 300,000 miles.

Refinancing your auto loan — or replacing your existing financing with a new loan — could help lower your monthly car costs. Americans who refinance save $142 on average — totaling $1,346 over the loan term, according to a LendingTree study from November 2025. 

If you've improved your credit score recently, you may have a better chance of getting a lower rate on your refinance, depending on the rate landscape when you took out the original loan. To get the best deal when you sign the refinance agreement, shop around and get two to five quotes before deciding. 

If you're looking to get the lowest rates on the market, consider PenFed Credit Union. Select likes that its rates for a 36-month loan are as low as 4.19% for new cars, lower than most financing institutions. 

We also like that you can get the credit union experience pretty easily. While most credit unions have stringent membership requirements, all you have to do is open a savings account and deposit $5. 

If you're looking to save money on closing costs, try Gravity Lending, which focuses solely on refinancing auto loans. We love that this lender doesn't charge origination or prepayment penalty fees. 

Plus, it offers loan terms of 84 months, which means you can pay less each month over a longer period, which may make your monthly auto payments more manageable. 

If you have less-than-perfect credit, but still want to see if you can get a better deal on your auto loan, think about applying with iLending. With this lender, you'll be able to apply for an auto loan with a credit score of 560 or higher — lower than the 600 most lenders require. 

It also offers refinancing for cars up to a decade old, which most lenders do not. 

Getting the best deal possible on car insurance can free up your budget. However, you might need to do some work to find the best price for you.

After all, rates vary based on things like your driving record, age, the amount you drive each year and your location. In some states, your credit score could also play a role in determining how much you'll pay.

Shopping around once a year or at each car insurance renewal can help you be certain you're still getting the lowest premium. To start comparing options, get quotes from several insurance companies working in your area, keeping the coverage limits and deductibles the same.

CNBC Select has crowned Nationwide as a top insurer for affordability, as it tends to offer affordable rates, several discounts, and has a pay-per-mile insurance program — a useful option if you don't drive much.

We also like Travelers for its widespread availability and discounts for bundling, owning your home and driving an electric vehicle. Plus, a safe driver discount is available to those with no at-fault accidents or points on their license.

Additionally, you could use an AI tool to simplify your shopping: We like Jerry's easy-to-use app since it can help you see prices from dozens of insurers in just a few minutes. It can even help you save and switch in the future, even notifying you if it finds lower prices.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance story is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.