This is a collaborative post. All opinions are my own.

Ben and I are going through every category of our expenses and trying to cut them down. Transportation is a big one. Luckily, neither of us are "car people" and I think we've made pretty good decisions so far. We shared one car for a looong time, carpooling to work in Seattle and walking or taking the train whenever we could. After moving to Spokane and adding kids to the equation, we felt like we each needed a vehicle, so we bought our second car--a Prius. We got a great deal (used) and paid for it with cash. But now, Ben's Malibu (which he's had for over 12 years) is starting to break down, and once we have another baby we won't be able to fit all the car seats in the back of our Prius. So we're quickly approaching the time when we'll need to figure out our next vehicle...mini van, here we come! :D These tips are as much for myself as they are for you, to keep me in check.

1. Don't buy new

I've heard that new cars lose 10% of their value the instant you drive them off the lot, and 20% in the first year of ownership. That's a pretty hefty price tag for the privilege of being the first owner! For that reason, we always try to find a deal on a gently used vehicle. That way WE get the benefit from the value it has lost. Buying used is a big part of our frugal plan for transportation.

2. Buy from a private party instead of a dealer

Dealers add a markup to every car they sell--after all, they have to make money too. You can save big time if you find a deal from a private seller, preferably someone you know and trust. We got our Prius from my aunt and uncle, so we knew that not only were they giving us a good price, but they had also taken excellent care of the car. Neighborhood Facebook groups are also a good place to look. I feel like people in your neighborhood are less likely to try and scam you than a random person on Craigslist. Or take matters into your own hands. If you can't find a listing that matches what you need, try posting on your own social media profiles, asking friends if they know anyone who's selling a vehicle. Having a personal connection through a friend-of-a-friend increases your chances of getting a good deal.

3. Negotiate

Used cars are one of the few categories in America where negotiation is expected...and some wiggle room is built into the price. That means if you're not negotiating, you're paying too much. In order to negotiate well, you should do some research beforehand to see what the car is worth according to third party sites like Kelley Blue Book. Also look online for similar cars for sale at dealerships and private sellers to get a point of reference. A few hours of research could save you thousands of dollars! The power of negotiation applies to other things too...one big area is insurance. Call around to different companies, compare prices, and ask for discounts. We've been able to get significantly lower rates by doing this every couple years.

4. Factor in all the monthly costs

The initial purchase price isn't where it ends. In fact, your monthly transportation expenses can add up to even more over the years. Gas, parking, insurance, tax, and other maintenance costs are inevitable. When you're comparing different vehicles, it's important to look at the big picture. Don't just compare the initial price. Add in how much it will cost you to run each vehicle. A fuel-efficient hybrid may end up being a better deal than a gas-guzzling SUV. We have been happily surprised by how little we spend on gas for our Prius.

Even if you're not changing vehicles, there are ways to reduce the monthly transportation costs like insurance, gas, and parking. I mentioned negotiating or switching insurance companies to get a better deal. With gas, you can fill up at Costco or use Safeway points for a discount. And when it comes to parking, you pay a premium for the most convenient spots. But there's usually free parking somewhere nearby, if you're willing to show up early and walk the difference. We parked for free in downtown Seattle, by scoping out free spots that were within a few miles of our workplaces. We had to get up extra early, and sometimes we had to walk in the rain, but most of the time we actually enjoyed our walks to work. It gave us time to chat and get in some exercise first thing in the morning.

5. Don't drive as much

I don't mean you should never leave the house to save a few bucks. But if there's another method of transportation you could use, then consider that option. Walking or biking can not only save you money, but can also get you in better shape and allow you to spend time outdoors, especially now that spring is here! If you take public transportation, you can use that time to read a book, listen to a podcast, or catch up on emails. Redeem your commute time for something more productive than sitting in traffic getting annoyed at other drivers.

6. Consider if you can make do with one vehicle

Ben and I did this for our first seven years of marriage. We worked within walking distance of each other, so we carpooled together. If we really needed separate transportation, there was always the train, the bus, biking, getting a ride from friends, or Uber. If we needed an SUV for road trips in the snow, or a truck to move big items, we could rent one. We saved a ton of money by making this work as long as possible. Not only did we skip the car payments, but we also weren't paying insurance and gas on a second vehicle.

7. Maintain your current vehicle & make it work as long as possible

There are transactional costs like tax when you buy a vehicle. So it's usually smart to make your current car last as long as possible, especially if it still has enough seats for your family. Proper maintenance will help you get the most out of your car’s performance. Get the oil changed when it tells you to, monitor the tire pressure, and occasionally have a mechanic check it for issues. Don't wait til it's urgent. We waited too long to get our brake pads replaced, which ended up damaging our brakes as a whole. That was an expensive lesson learned.

If the reason you want to upgrade your car is because of extra features that would make driving more enjoyable, you could consider whether adding some personalized features might make you happier with your current car, instead of changing it altogether. You could add an entertainment system for kids to watch shows on long road trips, or get Private Car Number Plates to help you find a common model in a busy parking lot.

These are some of the ways we've been able to reduce our transportation costs. I'm sure I'm missing some good tips too! Any additional ideas you would add to this list?

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