Feature - Cut running costs

By Richard Yarrow

31st January 2009

We’ve shown there are some amazing bargains out there if you have the cash to splash on a new motor. But don’t worry if you haven’t – as you can still save money. We’ve used our own motoring know-how, and the best industry advice, to shave hundreds of pounds off the average annual motoring budget. And all with the minimum of effort! Here’s how...

Insurance

The simplest advice is the best: shop around. The good news is that you may not need to wait until policy renewal time, as many cover providers offer a pro rata refund if you cancel your current one.If you don’t have time to do the legwork yourself, you could opt for a comparison website. But because the small print is not always clear, our advice is to try a few of these services, taking time to check the policy terms and conditions. Confused.com told us it saved drivers £207, on average, on cheaper policies in 2008.

Before you hit the Internet, though, think about how to cut your premium. If you’ve got a garage, use it – it could be worth up to 10 per cent. Also, work out your annual mileage. If it’s low you’re less of a risk, so the policy could be cheaper. Consider adding a second driver, too, as bizarrely that can have the same effect. And how do you describe your job? Interestingly, a ‘lawyer’ will pay less than a ‘solicitor’. Look for deals with inclusive breakdown cover, which often come free, or at a discounted price. Finally, buy online for further reductions; with the AA, you get 12.5 per cent off.

Shop around for your fuel
Yes, it’s convenient to use the local filling station, but if it’s significantly more expensive than another nearby one, why do it? Simply sign up to the www.petrolprices.com website for the cheapest forecourts in your area.

Supermarkets offer the lowest pence per litre rate, according to research conducted by the AA, usually by at least 1p a litre. As its figures show, the average driver uses 1,286 litres per year – that’s a potential saving of nearly £13, or around 50p per fill-up!

You should also apply the same principle to motorway journeys. Service area forecourts have higher overheads, so will charge more for fuel. Plan your journeys better to avoid them, or log on to www.5minutesaway.co.uk to find cheaper gas – and other facilities – a stone’s throw from the junctions.

Adjust your driving style
There is a way to save even more money on fuel: go easy with your right foot! Driving style makes the biggest difference to a car’s economy.

By adopting a few simple eco-driving techniques – the most significant of which is slowing down – the AA says you can cut at least 10 per cent, or £130, off your annual fuel bill. Some motorists can save much more.

Also, give greater thought to the road ahead, so you can coast up to junctions in gear rather than accelerating and braking. It uses far less juice.

Clean your own car
It’s great to pay someone else to do your dirty work, but when times are tough you can save money by digging out your bucket and sponge. Using a £5-a-time automatic car wash once a fortnight – so that’s 26 washes a year – adds up to £130. Yet a bottle of Nielsen Shampoo and Shine, Auto Express’s Product Honours 2008 car wash champ, will set you back only £4.95. For that, you get at least 26 washes, rather than one on the garage forecourt.

You’ll need some elbow grease, but an annual saving of £125 makes this worthwhile. And don’t bother with the expensive vacuum cleaner at the filling station. Using your own on the drive is free.

Check your tyre pressures
All too often, tyres are the last thing drivers consider – but keeping your tread in tip-top condition can save you money. Campaign group TyreSafe claims rubber which is 10psi under the recommended pressure can increase the car’s fuel consumption by 2.5 per cent. Let’s do the maths; the AA says the average price for a litre of unleaded is currently 86.65p, and using 1,286 litres a year (see above) puts the annual fuel cost at £1,114. If your tyres are under-inflated, you can add another £28 on to that total to cover the same distance.

TyreSafe also warns that 80 per cent inflation reduces a tyre’s life by a staggering 25 per cent. The average cost of a tyre is £75, so assuming you replace two a year, that’s £150 spent. But if it’s only giving three-quarters of the service it should, you’re getting just £112 of value from it. Keeping it correctly inflated will save you £38. Total saving? £66!

Think outside the main dealer network
Many people are guilty of heading to the showroom for all sorts of motoring jobs, particularly if they bought their car there. But because main dealers have high overheads, nearly everything they offer or sell can be sourced cheaper elsewhere – and this is especially true of repairs and servicing.

Warranty Direct’s latest survey revealed the average hourly labour rate at a franchised site was £94.70. But an independent workshop charges only £55.63. The firm says every car spends, on average, 2.74 hours a year being repaired, so it will be £107 cheaper to get it done away from a franchised outlet.

If you’re an AA member, discounts are offered at its approved network of Nationwide Autocentres. Explore special deals through your car manufacturer, insurer or breakdown service. Check the benefits of loyalty card schemes and clubs, and never buy accessories such as floor mats, hands-free car kits, tow bars or roof racks from dealers. All are sold cheaper elsewhere.

Secondly, if a part needs replacing, don’t assume it has to be sourced new. Could you find a used or reconditioned component that would do the job just as well? It can be a false economy so you need to be careful. But after a parking ding, what’s the point of buying a brand new rear bumper for a 10-year-old car? The Internet has loads of specialist search firms, or try auction websites or even your local scrapyard.

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