Buying or financing a car is a really exciting time and it can be great for your bank balance. Taking out car finance means that you can spread the cost of a newer car than you first thought you could get and paying for it in affordable monthly payments. This means owning a car can be more affordable and easier to set out your monthly budget. However, have you thought about how cheap or expensive it would be to own and run your next car? There are a few things you should consider before you commit to buying the car and also a few things you can do in the long run to reduce your running costs.
Before you buy
Check out the cheapest cars to insure
When you buy a new car, you will also need to take our car insurance. Car insurance in the UK is a compulsory and legal requirement so for something you have to pay for, you want to get the best deal possible. Car finance can be expensive if you are a young and first-time driver. This is because you are more likely to have a crash and have to claim on your insurance within the first year of driving.
There are many cars which are the cheapest to insure, usually cars which have smaller engine sizes such as 1.0 or 1.2 litre engines and cars which are small in general such as a hatchback.
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Check out road tax rates
Road tax, also known as or Vehicle Excise Duty, is a tax which every vehicle owner needs to pay each year for using a vehicle on UK roads. How much you pay in road tax each year is based on the type of car you have; how old it is and how you want to pay. Typically, the amount of road tax you pay will depend on how environmentally friendly your car is.
The more economical, the lower your tax will be. For example, electric cars which produce no emissions are free from road tax charges. However, you don’t have to choose electric to benefit from low road tax rates. Cars such as the Nissan Qashqai 1.5 dCi engine, Peugeot 108 1.2 litre Pure Tech engine and Volkswagen Golf 1.6 TDI all benefit from no road tax fees.
Use a car finance broker
Before you sort your finance, you could consider using a car finance broker to help save you money on your finance deal. Many people think you can only get the best deals at a dealership but using car finance broker could be beneficial to you. Brokers are also good if you are applying for car finance with bad credit.
You would just need to apply once with a car finance broker such as Refused Car Finance who then send your application to a number of trusted lenders in the UK and help get the best deal for you. You can then get any car within your finance budget from any FCA approved dealership across the UK!
After you buy
Get cashback on your fuel purchases
Fuel can be one of the most expensive parts of motoring. It’s a necessity to getting round and fuel prices are on the rise in the UK in 2021. You can benefit from cashback deals on your fuel when you opt for a number of cashback card such as Tesco and American Express.
Ditch the extra weight
One of the simplest ways that people burn more fuel than they need to by carrying unnecessary weight in their car. Many of us are victim to carrying more stuff than we need and a simple tidy out of your car can make your fuel go further.
Start car sharing
Many companies in the UK encourage staff to car share with other work mates to help reduce the number of cards on the roads and less emissions. If you have workmates, you live close to you, you could start going to work together and taking turns to drive or giving each other money to cover fuel costs.
Check your tyre pressure
Tyres which are underinflated by 15psi can use up to 6% more fuel! A simple check of your tyre pressure and with inflating them or deflating them to the correct number can help you to drive more economically.
Drive slowly and consistently
You should always stick within the speed limits when driving but driving faster than you need to and also should do can waste money. It is more economical to maintain a consistent speed rather than speeding up and then decelerating.
Find the cheapest parking
Parking in city centre can be costly and unnecessary. There are many smartphone apps which help you to identify the cheapest parking option near you. Some parking apps such as Just Park even allow you to reserve your parking space at thousands of parking locations across the UK.