When we look to budget and control what we spend when times are tough, for many a key cost is the motor vehicle we operate. They can hoover up large chunks of what we earn. But they are essential to many of our lives. However, despite the cost of petrol, insurance and the vehicles themselves, there are many ways that we can cut costs. Moolr took a look at how to save money on your car.
Price Of The Vehicle
Many people make the error of purchasing a vehicle that is too expensive. They end up owing thousands of pounds on an expensive short term loan. Repayments bog them down for an item that could have been bought much cheaper. When you are preparing to purchase a car, think long and hard about the costs involved. It is easy to be swayed by a nice looking vehicle. But be practical and go for a car that fits your budget. Look for reliability so that you are not hit with extra costs further down the road. Sit down and calculate all costs including petrol, insurance, breakdown cover etc.
Do You Need a Car?
A tough question to ask, but one that may save you a fortune. The thought of being without a car is tough to handle for many, but how often do you really use it? Or need to use it? Especially if you live in a crowded, grid-locked city like London, is a car really needed or beneficial? There may be decent transport links that will allow you to visit your friends and family and get to work. you remove the hassle of locating parking too. If you do need a vehicle, it could turn out to be much more cost effective to rent a vehicle as and when you need it. Car rental is cheaper at weekends than during the week. There are plenty of other ways to get around instead of owning your own vehicle. Look at trains, buses, bikes and walking. As a city resident, it is easier for me to get into the centre of Manchester by tram than by a car.
Save Money On Your Car – New Or Old?
The first consideration is whether to buy a new vehicle or to go for one that is second hand. Often an older vehicle is better value, especially if the vehicle is not that old. As soon as a new car hits the road it loses a lot of its value. Thus you cut costs when buying the car and it will give equally good service. Just ensure that whatever vehicle you choose, it comes with warranties. Have the security when something goes wrong.
Save Money On Your Car – Cut Costs when Purchasing a Car
Ideally, seek cars that are about a year old. Source models with low mileage. You will find the list price is a lot lower than the brand new vehicles. Dealers look to move older models as quickly as possible so there are some excellent discounts to be had. This is the same as a pair of trainers or TV model – as soon as a newer model is available, it becomes much better value.
If you cannot get the price as low as you want try bartering for extras like a year’s tax or insurance, an upgrade on the radio or tyres or seating.
Cut Costs by Choosing Insurance, Tax and Breakdown Cover Wisely
The key consideration is how you can run a vehicle at the lowest possible cost. Car insurance can be expensive so shop around and look at the comparison websites to find the best deals. Some comparison sites will offer you rewards to help cover costs.
You can opt to pay a larger excess in the event of an accident and this will lower the annual premium. Paying the whole year’s premium at the start of the contract will also be cheaper than going for monthly direct debit. You may not need fully comprehensive if the value of the car is relatively low. Just by taking out third party, fire and theft cover you can save some hundreds of pounds.
Save Money On Your Car – Age Matters
Age is of great importance when it comes to car insurance. young drivers of course pay a premium. Restricting the driving to one person will reduce the amount you have to pay. A clean record will reduce costs.
There is also the chance of getting a lower rate depending upon your job. such jobs include possibly teachers, police, fireman or lawyers.
Finally, look at insuring the car for a restricted mileage should you be confident you will not hammer the vehicle. Drivers who cover under 5,000 miles a year can get a reduction in premiums. Having car insurance is compulsory but by looking around for a good deal you can get this essential cover for a lot less than you think.
Should renewals in insurance and breakdown cover come with an increase in price, threaten to leave if you do not get the price you want. Companies will normally back down as they want to retain your business.
