Car maintenance: Car finance provider Zuto reports that the average driver spent over £2,000 on car maintenance last year. That will cover the average home’s annual heating and electric costs. The majority of us depend on our cars, so it makes sense to take every possible step to reduce the cost, according to Aidan Rushby, CEO of the auto finance app Carmoola.
Since driving is one of the largest expenses of all, almost everyone is looking for methods to save money, and your automobile can be an excellent place to start.
“There are several ways to reduce the cost of ownership, including the way you finance the purchase, the kind of car you choose, the fuel it runs on, insurance, and maintenance.”
Don’t base your decision to buy a new car in 2024 just on the sticker price; consider other factors as well. Depending on how far you drive, fuel-efficient vehicles might save you hundreds of pounds annually, while picking a car in a lower tax bracket could save you £180.
Examine auto loan expenses as well, perhaps with the help of an internet calculator. “This can assist you in determining which cars are affordable for you by displaying your monthly payment amounts based on various loan amounts.”
Car Insurance Costs Surge by 17%: Strategies to Lower Your Bill
According to Rushby, once you get the keys, you should maintain the vehicle. “Follow your car’s recommended maintenance schedule to avoid expensive repairs. This includes tire checks, oil changes, and filter replacements.”
You can save fuel and lessen wear and tear by utilizing the most economical gear, smoothly accelerating, and shutting off the engine while it’s idling. He continues, “It might also help you avoid collisions and speeding fines.”
In addition to regularly checking and maintaining tire pressure—properly inflated tires increase safety and consume less gasoline—you should also unload excess weight because lighter cars require less fuel.
You may use websites like petroprices.com to find the cheapest fuel in your area. Try charging your electric car (EV) overnight if possible, as this is the most economical time to do so. “Make sure the charger on your car only draws power when expenses are low.”
Rushby advised trying to lower the debt by refinancing with a different lender or making larger payments if you bought your car with credit.
Be advised that switching or overpaying may result in penalty penalties from the lender, so always make sure.
One of the largest expenses is auto insurance, and according to statistics from the comparison website Compare the Market, rates have skyrocketed recently.
Insurance for cars running on gasoline increased by £337 to £980 in the year ending in November, while premiums for electric vehicles increased by £313 to £929 annually.
Insurance costs are rising due to more expensive labor, energy, and parts, but drivers can potentially save up to £519 annually by comparing quotes instead of renewing automatically when their policy ends, according to Julie Daniels, a car insurance specialist at Compare the Market.
The Society of Motor Manufacturers and Traders reports that the cost of purchasing electric cars has increased and that sales of these vehicles fell 17.1% in November due to rising living expenses.
Daniels claims that upcoming tax increases may also have an impact on EV popularity. Owners will have to begin paying Vehicle Excise Duty, which will come with an annual cost of about £180, in April 2025.
