With the cost-of-living crisis squeezing budgets across the UK, owning and running a car has become increasingly expensive. The rising costs of insurance, repairs and general maintenance – which went up by 13% from 2022 to 2023 – can strain any motorist’s finances. However, there are effective ways to manage and reduce these costs, to help keep driving affordable without compromising on safety or efficiency.
Optimise fuel consumption
Fuel will be one of your biggest expenses, but this can be curbed through certain behaviours. Adopt more fuel-efficient driving habits such as maintaining a steady speed, avoiding heavy acceleration and spending less time idling. Regular maintenance such as checking tyre pressure and timely oil changes can also improve your vehicle’s efficiency. Additionally, keeping informed about the cheapest fuel prices in your area can save you a notable amount per litre.
Choose the right insurance
Car insurance costs have risen sharply in the UK over the last year. While you’re unlikely to be able to prevent some sort of increase in your expenses here, you should compare insurance providers annually to make sure you’re getting the best deal available.
Consider increasing your voluntary excess to reduce premiums and explore telematics insurance, which can offer savings for safe driving behaviours. Be mindful of exactly what kinds of cover you actually need so that you can avoid overpaying for unnecessary policy features.
Regular vehicle maintenance
Keep up on maintenance so that you don’t have to shell out for costlier repairs down the line. Making sure that your vehicle stays in good working order not only extends its life but also enhances its fuel efficiency and safety on the road.
Consider a change of vehicle
If your current vehicle is incurring too much cost for your liking, and you aren’t tied to keeping it, you could look into switching to a less expensive or used vehicle. Smaller, less powerful cars generally consume less fuel and have lower insurance and maintenance costs. Additionally, purchasing a used car can be a financially savvy option. While new cars depreciate rapidly within the first few years, buying a used Vauxhall Corsa, for example, allows you to avoid the steep initial depreciation, offering substantial savings. However, it’s crucial to conduct a thorough inspection on a used car and check the vehicle history to ensure it is in good condition and avoid future costly repairs.
Electric vehicles, though potentially more expensive up front whether new or used, can also offer long-term savings due to lower operational and maintenance costs. There are some tax incentives to factor in, as well.
If you don’t need a car on a constant basis, you could explore short-term solutions like hiring a car for certain periods.
