How to stay on the road as costs are driven higher
HARVEY JONES REVEALS WAYS TO FIGHT BACK AGAINST THE SPIKES IN FUEL PRICES
AS THE cost of a litre of petrol rockets past £1.55, motorists risk being driven off the road by the sheer expense involved in getting behind the wheel.
Some forecourts in London charged 219p for a litre of diesel – just short of £10 a gallon – as the oil price raced past $120 a barrel due to Russia’s invasion of Ukraine.
Petrol isn’t the only motoring cost that is accelerating. The cost of buying a new car rose by almost a third last year, largely due to shortages in the wake of the pandemic, with a knock-on effect on used car prices.
As if that wasn’t bad enough, insurance premiums are climbing as the roads get busy again after lockdowns, increasing accident rates.
Brits typically spend over £3,400 on their car every year, according to research from Nerd Wallet, and that figure is only going in one direction.
Drivers need to look at every cost, and do all they can to lower them.
Dealership Peter Vardy has listed seven quick changes you can make now to cut your car costs by a third this year. It reckons you can save up to £1,400 as a result.
ADD SOMEONE TO YOUR INSURANCE
Anyone new to driving can slash their insurance costs by naming a parent on their policy. But never pretend an older relative is the main driver, which is called “fronting” and counts as fraud.
Annual saving: £426, according to Uswitch DON’T USE PREMIUM FUELS FOR STANDARD CARS
Unless you are driving a performance vehicle, you’re unlikely to see many improvements with a premium fuel but you will pay 10p more a litre. Stick to standard unleaded.
Annual saving: £138.32
GET READY TO HAGGLE
Whether you are buying car insurance, breakdown cover or a new or used car, haggling works. According to Moneysavingexpert.com, motorists who have tried to bargain down insurance costs with AA, Admiral and RAC had an 80% success rate.
Annual saving: £100
FILL UP AT A SUPERMARKET
Typically, supermarket forecourts are cheaper than branded garages.
Annual saving: £74.10
DO YOUR OWN MAINTENANCE CHECKS
Fix minor wear and tear before it becomes a big problem. The average annual repair bill is £574, so this could bring big savings.
BUY FUEL WITH A CASHBACK CARD
The Santander 123 credit card, for example, gives you 3%.
Annual saving: £52.68
PAY YOUR ROAD TAX ANNUALLY
While it might be easier to spread the pain and pay monthly, it costs more to pay this way.
Annual saving: £29
MORE WAYS TO SAVE
Money saving expert Nick Drewe, from Wethrift, also suggests using forecourt loyalty and reward schemes when filling up.
“From Texaco to Sainsbury’s and Tesco, petrol stations and supermarkets offer loyalty cards to encourage customers to use their services,” he adds.
If driving in an unfamiliar location, use a sat-nav app to plan your route. Says Nick: “Don’t waste petrol by getting lost and going round in circles.”
Inflating your tyres to the right pressure is another way to save.
“Poorly inflated tyres use more fuel, due to added friction, so check the recommended tyre pressure for your car,” he adds.
A smoother driving style, with gentle accelerating and braking, can reduce fuel consumption too.
Driving around with heavy items in the boot, or aerodynamic drag caused by a roof rack, will also increase fuel consumption, so remove anything you don’t need from your car.
Fuel prices change all the time but sites such as petrolprices.com and confused.com/petrol-prices can help you find the cheapest fuel in your area.
Get a better price when selling
Now is a great time to sell your used car. The average price jumped by £3,400 between last May and November to £17,366, according to Auto Trader.
About a quarter of all used cars under one year old are now worth more than a new equivalent, as the post-pandemic shortage of new vehicles drives up the price of all old ones, too.
Given that used car prices jumped 28% in 2021, even faster than new cars, sellers must try and get all they can for their old motor. These tips from independent finance broker Norton Finance can help you.
Sell privately: Trading in at the dealership is simple, but there’s a price to pay for that. Selling privately can generate up to 25% more.
Give it a wash: Trying to sell a car that’s covered in dirt sends a message that you don’t take care of it. A £25 car cleaning kit and a few hours of elbow grease can increase its value by up to 10%.
Repair any bodywork damage: Buyers mentally subtract scuffs and scrapes from a car’s value. Consider taking your motor to a Small and Medium Area Repair Technology (SMART) workshop. You could get all the dents fixed for as little as £150, which more than pays for itself when selling.
Get paperwork in order: Having the V5C logbook, service history,
insurance repairs and parts’ receipts will ease buyer concerns and show your honesty as a seller.
Spruce up the interior: Be sure to get rid of nasty smells too.
Electric ideas to save cash
Electric cars cost more to buy but are cheaper to run with lower road tax and repair bills, as they have fewer moving parts.
David Lewis, electric lead at Select Car Leasing, says even with energy prices increasing, it is still possible to fuel a car for just £2.28, charging during off-peak times.
“Electricity is cheaper between 11pm and 8am, so putting your car on charge before you head to bed will save you money,” he says.
Charging the car at home during off-peak hours once a week could save up to £1,037 a year, David calculates.
Use free EV chargers where possible, too. One in five public charging points is free to use, but they aren’t always easy to find.
“Some electric cars have apps that let you search for the nearest charging points,” David says.
“Otherwise, look for free local chargers in supermarkets, multi-storey car parks and shopping centres using zap-map. com.”
Charging in these locations could save you £17.25 a pop.
Rapid chargers are fast but speed and convenience come at a cost.
“Public rapid chargers cost roughly £10 for an 80% charge, while a full charge at home would cost just £5. Save them for emergencies.”
If you have an electric car, get it serviced regularly, as a poorly running vehicle will be more wasteful on the battery.
“If you don’t, it will lose charge quicker, and you could pay £1,000 for battery cell repairs,” David adds.
Don’t waste petrol by getting lost and going round in circles... Nick Drewe, of Wethrift, on the benefits of using a sat-nav