Running a car can be expensive, and for families looking to cut their expenditure during 2010, it may be a luxury that they’re prepared to forgo. But you don’t need to sell your car if you need extra cash, and there are plenty of ways that you can make your pounds go further when it comes to driving. Just a few changes to the way you pay for or run your car could see you save hundreds of pounds. Take a look at this article for some money saving car tips.
Pay Off the Payment Plan
If you’ve bought a car on finance, then it’s more than likely that you’ll be paying interest at a higher rate than you could get. Car finance is often sold on the forecourt, and it can make the dealership good money because the interest rates are normally between 15-20%. It’s much better to arrange your own finance for your car through a bank. If you have a decent credit record, you should be able to arrange a personal car loan of up to £10,000 at a rate between 8-12%, which is much lower than what you would typically pay on the forecourt. If you already have car finance, then you could take out a new loan at a lower rate and then pay off your existing debt with it – you’ll be much better off in the long term if switch finance; it could save you hundreds of pounds.
Watching Your Revs
It’s not just buying a car that can be expensive, but running it can be a financial blow too if it needs a lot of maintenance. Fuel prices in Britain are notoriously expensive, and it’s unlikely that we’ll see a substantial drop any time soon. One of the best ways to save on your fuel is to combine it with your weekly supermarket trip and use the petrol station there. Not only are supermarkets often cheaper, but spending on petrol with a loyalty card is a great way to lack up precious points and receive vouchers. Other ways to save on petrol is to watch your revs. Always use your hand break when stopping for short periods on slopes, and don’t stay in low gears for too long. It might feel satisfying to fire your engine like Jenson Button, but you’ll be worse of financially if you keep doing it. It’s not particularly good for your engine either.
Road Tax and Car Insurance
Road tax and car insurance are a legal requirement for drivers. Not having either of these can lead to heavy fines and even having your car crushed or, in the case of an accident, serious legal bills. Road tax is fixed according to the the government’s budget, but with a relatively cheap two wheel drive you should find yourself in one of the lower brackets.
Car insurance, meanwhile, differs from provider to provider. You will need to shop around if you are to get the best deal, and be ready to switch from your current provider if you think you can get a better deal elsewhere. Take a look at a few price comparison websites but it can also be useful to check some individual providers that may not be listed on these comparison sites; car insurance from Kwik Fit Insurance comes with a 20% online discount for instance, so keep your eyes peeled.
