Can you afford to drive your car?

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Could you spare an extra £20 every single day? Well, that’s almost how much you could be paying to keep your car on the road.

According to data from debt charity Credit Action, the average car costs £18.33 to run each day. Doing the maths, this figure equals £6,690.45 during the course of a year.

Although costs look set to remain high for the foreseeable future, there are several tricks to help offset some of this expense.

Pay less at the pump

According to research from car insurance firm Hastings Direct, fuel costs have almost doubled since the start of the Millennium. Some 20% of drivers say they would give up their car completely if petrol prices hit £2 a litre.

Typically, heavier cars use a greater amount of fuel, which means that reducing a vehicle’s weight could cut costs. Consider simple steps such as removing the roof rack or taking unnecessary items out of the boot.

Earn cashback

A number of credit cards allow customers to earn rewards and cashback if they use their flexible friend to cover driving costs.

With the AA Credit Card, AA members can earn up to 4% back on motoring or fuel expenses.

The card carries a representative APR of 16.9% so it would be wise to pay off the bill in full each month – otherwise the interest payments could cancel out any rewards.

Santander’s 123 Credit Card pays 3% cashback on fuel purchases – to a maximum £9 per month. While this card could prove profitable for motorists, there is a £24 annual fee and a 22.8% APR representative.

Cut the cost of parking

Even when we’re not using our cars, they can cost money and paying rip-off parking charges is a huge frustration for many motorists.

To help avoid this, investigate options such as free on-street parking. Alternatively, look into park and ride schemes that could be less costly than parking in a city centre.

Avoid unnecessary fines

Driving is costly enough even if you stick to the rules – throw in fines or penalties and expenses could soar even further.

If you own a car you’re not currently driving and is therefore uninsured, you’re legally required to declare a Statutory Off-Road Notification (SORN) with the Driver and Vehicle Licensing Agency.

Motorists who are caught with an uninsured vehicle that isn’t declared SORN could receive a penalty of £100. Those who repeatedly fail to make the proper arrangements could face a court prosecution with a maximum penalty of £1,000.

Fines can be even more frustrating when they’re unfair. If you receive a parking fine you think is undeserved, consider putting in an appeal by writing to your local council.

Make fewer trips

While this advice might sound obvious, it’s still worth bearing in mind. As well as using less fuel and cutting parking costs, having a low annual mileage could reduce the cost of insurance premiums.

According to Hastings Direct, some 7% of motorists have reduced their weekly mileage by more than 100 miles in response to rising costs.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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