The cost of motoring is high! You don’t need me to tell you this, of course.
Not only will your bank balance take a hit when you’re buying a car, but you will drive your finances down further with those usual motoring expenses, such as those connected to your fuel and insurance.
Being frugal, you might resist the urge to buy a car. If public transport or a bike can get you to where you need to be, then this might be the most affordable option. However, if you really do need a car (or simply enjoy the thrill of the open road), then you need to think frugally to minimise the costs to yourself.
Buying a car
If you’re living frugally, then you shouldn’t buy a new car. Brand new models lose their value at an exponential rate after they have been driven off the forecourt, so that initial cost doesn’t seem worth it. Newer cars cost more to insure too, and because they are fitted with the latest technologies, they might also need specialist services that regular Joe mechanics aren’t able to provide. These will be expensive.
Being frugal then, buy used. And when you’re looking for a car, be sensible and find ways to minimise the costs to yourself. So, if you were looking to buy on finance, for example, you would need to make sure you could afford the monthly payments. Sites such as Autopavilion offer finance calculators so you can measure the cost to yourself. You might need to look at a cheaper car if the expected payments were too high, or you could extend the length of the payment plan to keep the costs down.
You should also save for your car in advance, as you might then be able to buy outright without any finance deal. You would also have the opportunity to take out a loan or finance deal with a lower interest rate, as the more money you put down as a downpayment, the better.
And before buying, use a free car valuation tool, as you can then find out exactly how much the car you are considering is worth. You will then be able to haggle with the salesman, without being ripped off with something that is worth less than the price tag.
Running a car
You can make savings on all of your expenses, so you don’t have to drive yourself in debt when keeping your car on the roads.
When buying fuel, for example, you should shop around your local forecourts. Generally speaking, supermarkets sell cheaper fuel than independent sellers, so you might want to fill your car up after you have finished your weekly shopping. You should also download a price comparison app onto your phone, as you will then be able to source the cheapest seller near you.
When it comes to buying car insurance, use the price comparison sites available to you. GoCompare and MoneySupermarket are just two common examples. And you can bring your insurance down further by fitting a telemetrics device in your car, as this will record your driving. Should you be able to showcase safer driving, your insurer will lower your premium. Speak to your insurance provider to find out more.
And there are loads of other ways to save money on your regular driving expenses. Finance guru Martin Lewis has plenty of advice to offer you on MoneySavingExpert, so read the tips given.
Final word
Buying and running a car can be expensive, but by taking frugal steps to minimise the costs to yourself, you shouldn’t fall into too many financial potholes. Let us know what you think, and if you have any other suggestions for our readers, be sure to share them with us!
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