The cost-of-living crisis is well into its second year, and many households have already taken direct and even drastic measures to reduce their outgoing expenses each month. There are expenses that are difficult to control, though – your car being one strong example. Keeping a car can be a costly thing, but also a necessary one for families or those with long commutes. Every little helps when it comes to saving, so what changes might you be able to make for the betterment of your bank account?
Buy Used
The fundamental way to save money on a car is, quite simply, to buy a used one. New cars come at a considerable premium and lose a significant percentage of that premium to depreciation the moment they leave the showroom floor. Second-hand vehicles have already depreciated, making them cheaper to buy and more lucrative to re-sell should you consider an upgrade.
Moderating your expectations, and looking a little lower down the pecking order at a quality used car, can shave a large amount of money from your initial vehicle expenditure. Your local used car dealership will have a wide range of vehicle types to choose from, all of which will have full service history and many of which may benefit from a warranty programme. As such, you can enjoy the service of a car showroom at a much lower overall cost.
Switch Your Insurance
Of course, the initial cost of your car – unless you agree to a financing deal – is absorbed fairly quickly in the grand scheme of things. There are multiple ongoing costs you will need to reconcile too, one of which is insurance.
As you will already know, car insurance is a non-negotiable provision, making it an unavoidable cost. However, there are ways you can engage with this cost, and bring down the amount you pay for your insurance plan each year. For example, many insurance companies offer ‘black box’ insurance plans, wherein telematic data on your driving is shared with your provider and tied to the value of your plan. While invasive, the result can be a much lower premium.
Planning Your Fuel Use
Fuel is, of course, the most impactful monthly expenditure when it comes to regular driving. Fuel prices are also inescapable, but can be managed with a shrewd approach. For example, the price of fuel will differ from petrol station to petrol station; identifying the cheapest one near you can help you plan for a less expensive re-fuel. Some stations may be supermarket-owned and may confer vouchers or other benefits that you can transfer to your weekly grocery shop.
Further to this, re-fuelling regularly, in advance, and at your nominated station can help reduce overall costs. Many cars run more efficiently with a fuller tank of fuel, and filling all the way up on a regular basis can limit the likelihood of you having to top up at a more expensive station elsewhere.
