Six ways to drive down your car costs
Fashion is a fickle mistress, and - after a decade long spending boom - it seems saving money is back in style.
The shock of Britain's slide into recession has prompted many of us to start pinching the pennies; we're shopping smarter, beating down old debts and slashing the cost of our household bills.
However, it might seem impossible to cut back your spending on something you use every day. For many Brits, a car is one of life's essentials - but having to pay for necessities such as insurance, regular MOTS and petrol soon adds up.
In this article, I reveal six simple tips for driving down your car costs which should help you save easy money on your motor.
1. Minimise your mileage
First and foremost, think about how many miles you drive in your car each week. If it's possible for you to drive less (perhaps by travelling to work with a colleague), doing so will see you save money on fuel straight away.
In addition, committing to a lower annual mileage might also reduce the price of your next insurance premium.
I think this is a step some families - especially those with two cars - could consider. For example, if one of your vehicles is consistently used far less than the other, making your insurer aware of this should help you achieve a painless saving.
2. Improve fuel efficiency
Making your car more fuel efficient doesn't have to mean fitting it with expensive, environmentally friendly equipment. In fact, you could ensure the petrol or diesel you put in your car goes a little further by following these simple steps:
• De-clutter your car. The more your vehicle weighs, the less fuel efficient it will be. If you have a roof rack, remove it whenever it is not being used.
• Turn off your air conditioning. Using it can eat up fuel fast, so only switch on your air con when you really need it.
• Keep your tyres properly inflated. If they're under-inflated, your car won't move aerodynamically and you'll need to put your foot down harder.
• Change your speed gradually. Increasing or reducing the speed of your car suddenly will waste fuel. Drive carefully and plan ahead to avoid swift acceleration or braking.
• Drive in the correct gear. If you drive your car in the appropriate gear at all times, you'll keep your car's RPM (revolutions per minute) to a minimum. This will enable the engine to work more fuel efficiently.
3. Get a better deal on fuel
Where you buy your petrol or diesel can have an unexpected impact on how much it costs. Some garages price fuel far more competitively than others, so it pays to know which garages are the cheapest in your area before filling up.
PetrolPrices.com is a nifty website that will search for the lowest prices on all types of fuel. Once you've signed up to use the site's free service, all you need to do is input your postcode and specify how far you're willing to drive to buy fuel.
I checked the price of unleaded at garages within five miles of my home today, and the difference between the cheapest and most expensive pumps was a whopping 7p per litre!
4. Pay less to park
Depending on where you live and work, paying to park your car could seriously inflate the amount you spend each time you drive.
Car parks in large cities such as London often charge motorists massive hourly fees, meaning it can be cheaper to visit them on public transport than to drive there.
If you regularly have to park in an expensive location, it might be possible for you to cut the cost of leaving your car somewhere safe. Websites such as YourParkingSpace.co.uk list private parking spaces which you can rent on a monthly or weekly basis. Using one could be far cheaper than parking at your local multi-storey.
Conversely, you might want to consider renting out your own drive or parking space if it is unused for prolonged periods. Depending on where you live, this could earn you hundreds of pounds over the course of a year.
5. Cut the price of your insurance premium
It's important to remember that your insurer's annual renewal quote is unlikely to represent the best deal available to you. That's because many companies charge existing customers higher insurance premiums than new customers, whose business they are working harder to attract.
Before you renew your policy, it's important to shop around and compare quotes from a range of different insurers. Using an online tool to scour the market for the best deals could save you a significant sum.
6. Spend smarter and get cashback!
It's important to find out whether your insurer will charge you more for paying your premium monthly rather than annually. Some will add ‘interest' to your premium if you opt to pay by direct debit.
If this is the case and you don't have sufficient savings to cover your insurance costs, you could consider buying it using a credit card with a 0% on new purchases deal. Provided you pay back the balance in full before the 0% deal expires, this tactic will allow you to spread the cost of your insurance for free.
Finally, using a cashback credit card to pay for your petrol (and cover other day to day expenses) could help you earn extra dosh, no effort required.
Provided you pay back what you've spent on the card each month, in full and before it accrues any interest, ditching your debit card in favour of a card like the American Express Platinum Cashback Credit Card could earn you hundreds of pounds this year.
For a more detailed explanation of how cashback credit cards work, read this article.
**Articles featured on BeatThatQuote.com are for information purposes only and reflect the views of individual writers. Articles are not, and should not be considered as, financial advice. BeatThatQuote.com strongly encourages our readers not to rely solely on information contained within this article/our website, but to conduct their own research and seek independent advice about the financial products they purchase.**
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