A recession isn’t all bad news. The number of traffic jams has fallen by 31% over the past two years, according to a study by the AA and Trafficmaster. Rising unemployment is one reason for fewer journeys – but so is the rising cost of running a car.
Fuel prices, for example, rose for the third time in nine months last week, when a further 2p per litre fuel duty came in. This has pushed the average price of petrol to 105p a litre compared to 81.5p five years ago. So what can you do to bring costs down?
Shop around for fuel
Petrol prices vary a great deal from forecourt to forecourt. To find the cheapest prices near you, log onto Petrolprices.com. Membership of the site is free. Once you’ve registered it will tell you the stations with the cheapest unleaded, diesel, super and liquefied petroleum gas (LPG) close to your postcode.
Also, try reducing your fuel consumption. Get your car serviced regularly, check your tyre pressures are correct and empty out any junk. The more stuff your car is carrying, the more fuel it will use, so open the boot and ditch everything but the essentials. Also, remove roof bars or top boxes if you aren’t using them.
Cut your insurance costs
Shop around for car insurance using sites such as Confused.com or Compare the Market. The average driver can save up to £157 this way, according to Moneysupermarket.com.
And there are other ways to trim your insurance premiums. If you can afford to, pay for your insurance up front, says Emma Simon in The Daily Telegraph. “Most insurers charge interest at up to 24% [a year] if you pay monthly by direct debit.”
Also, make sure you aren’t paying for unnecessary cover. This could include overseas cover when you never take your car abroad, or a courtesy car that you may never use.
Reduce the legal costs
There is no avoiding road tax but don’t pay more than you need. If you pay your road tax annually, rather than every six months, it’s £40 a year cheaper.
An MOT is also a legal requirement for a car that is more than three years old, but many of us overpay. The price of an MOT test is fixed by the government at £54. However, many garages are quick to add the cost of unnecessary repairs. To make sure you are getting a fair deal, try getting your MOT done at a council-run MOT centre. Their garages don’t do repairs so have no vested interest in failing your car. MoneySavingExpert.com has a list of council MOT test centres.
Tips for the really determined
These tips are for the really committed money savers and may not save you a fortune. But if you subscribe to the idea of ‘look after the pennies as the pounds will look after themselves’ then they may be for you.
1. Buy your petrol at night
Fuel density increases at colder temperatures but pumps measure according to volume. So fill up when it’s cool – i.e. at night – and you will get a little more petrol for your money. But we are talking a teeny weeny extra drop.
2. Hypermiling
This is where you alter the way you drive to maximise your fuel efficiency. Some of the suggestions are sensible – don’t speed, accelerate and decelerate gently, always drive in the highest gear possible – but many are too extreme for most of us. For example, driving behind large vehicles on motorways will give you an aerodynamic advantage and marginally cut your car’s fuel consumption, but it makes for a very boring journey spent staring at the back of a lorry. And a downright dangerous one if you get too close.