Saving Money On Your Car: 5 Top Tips
Motoring is expensive – but necessary too. Buying a car is very often the second largest expense we face after a home, but the costs don’t end there and a series of varied and fixed costs mean we certainly pay for our wheeled independence.
Many motoring costs can be minimised to a degree:
1. Buying
If you’re thinking of changing your car then some basic principles will help to ensure you don’t spend over the odds and that you buy correctly in the first place.
Set a budget – whether it’s a monthly amount on finance or not going over a given ‘sticker price’ to pay up front, set your budget and stick to it.
List your priorities – what do you need from your car? If you have particular requirements then make a list.
Draw up a shortlist and research the cars – there’s plenty of information within easy reach what with online road tests, manufacturer websites and other data.
Once you’ve completed these steps, then the shopping and test driving can begin.
2. Fuel and insurance
Fuel – you may think it isn’t worth shopping around for cheaper fuel but even a penny or two per litre will mount up over a period of time.
Insurance – make sure you’re always getting the best deal. Check your renewal price against others using online comparison sites. This is particularly critical for first time buyers, who should put insurance research on their list alongside learning the rules of the road and passing their practical test.
3. Servicing and maintenance
You don’t necessarily have to opt for your car’s franchised dealership for servicing, even if your car is under warranty. As long as the company you take the car to maintains it to the manufacturer’s standards you’re still covered.
That said, franchised dealers are sometimes worth checking out even if you run an older model. Some offer service deals as the market is very competitive.
MOT – shop around as prices can vary. There is a set minimum fee for an MOT test but test centres may differ in what they’ll charge. Be sure of what you’re buying before you book in.
4. Replacement parts
Tyres, exhausts and other – shop around next time you need tyres or a replacement exhaust system. It’s often easy to get prices from quick fit centres and tyre suppliers online – maybe your local people will match it so that you can the price you can afford with the service you trust.
5. Minimising depreciation
Undoubtedly depreciation is the single largest cost of running a car, and unfortunately the bulk of it is determined by what you buy and the market for it when you sell it on. Here are a few tips:
Colour – when buying be aware that oddball colours can affect ‘saleability’. That funky pale green may not suit everyone when you’re selling, even though you may like it now. It might not be particularly fashionable in five years either.
Equipment – the price of options often aren’t recouped when you sell your car. Some are important, depending on the class of car, but don’t expect to get much of your money back on them.
Add on equipment – be careful if fitting anything you’d look to remove when selling, holes drilled in the bodywork don’t look good.
Service history – a car with a full service history (FSH in adverts) will be much easier to sell than one with gaps.
Keep invoices for repairs especially if there’s been a major one just before putting the car up for sale. The new owner, or dealership if part exchanging it, may value the fact it has recently been fitted with a new clutch, for example.
Saving is possible
Some savings are seemingly small – such as shopping around for cheaper fuel – but every pound saved is worthwhile as you look to trim the cost of motoring.
