The invention belongs to the field of a coating and specifically relates to a rare earth composite coating for energy saving and emission reduction of a vehicle and a use method thereof. The rare earth composite coating for energy saving and emission reduction of the vehicle is prepared from the following raw materials: 30-40% of alkyd resin, 8-18% of calcium carbonate, 9-19% of barium sulfate, 1-2% of samarium, 1-2% of neodymium, 0.1-0.5% of lutecium, 0.3-0.8% of erbium, 1.5-5% of a dryer, 1.5-5% of a dispersing agent, 2.5-5% of an anti-settling agent, 9-17.5% of aromatic solvent oil, 9-21% of alkane solvent oil, 5-10.5% of methylbenzene, 3.5-8.5% of a wetting agent and 1-5% of a fire retardant. According to the use method for the rare earth composite coating, the rare earth composite coating is coated on the outer surface of an oil-way oil nozzle of the vehicle and / or in an engine intake tube. The rare earth composite coating provided by the invention has the advantages that 1) the emission of waste gas is reduced, and 70%-90% of waste gas emission is reduced; 2) the burning efficiency of the fuel oil is increased, and 10%-20% of fuel oil volume is saved; 3) the power is enhanced, and the power is increased by above 20%; 4) the noise of the engine is reduced; 5) the coating is simple, and the vehicle body structure is not damaged or changed; and 6) the generation of haze can be effectively relieved.