Whether you’re buying your first set of wheels or this is your 10th, it’s always important to remember it’s not just the initial cost you’ll have to budget for when it comes to a car. With several factors to consider each month, we’re looking at each one in detail as well as simple ways you can reduce them to save you money.
What are the monthly costs of running your car?
According to a report by NimbleFins, the average UK motorist spends £3,107 per year on running their car. That only covers things like fuel, insurance and servicing, and doesn’t include the cost of the car itself. Let’s look at some of the factors that impact the monthly cost of running your wheels.
Fuel – how economic your car is with fuel will depend on its make, model and age. If you’re buying a new or used car, it’s something worth finding out before you make the purchase. Remember that diesel cars are more efficient over long distances, so if you’re not planning on driving miles and miles every day, a petrol or hybrid car may be much more economical.
Depreciation – it’s a well-known fact that new cars depreciate more than used ones, but no matter what car you buy there are a number of ways you can help to keep its value. Looking after your car is the top way of doing this, including repairing any scratches or dings when they happen. It’s also wise not to rack up too many miles on the clock, as this will have a big impact on the overall value when you come to part ways with it.
Insurance – you must be insured to drive your vehicle – driving without insurance is illegal. There are three levels of insurance available, third party, third party fire and theft, and comprehensive. Head to a comparison website to find the best deal for you, and don’t forget to check every year when your policy comes up for renewal!
Repairs – although it’s impossible to predict how much repairs will cost you over time, it’s wise to save some money each month just in case. Buying a used car may mean you have more repairs than if you bought brand new, but you could buy an extended warranty to cover these if needed.
What can we do to reduce them?
Check fuel prices – there are a number of free apps online that allow you to check the price of fuel before you head to your local service station.
Clean your car regularly – did you know that the clutter in your car adds weight? This can affect the driving and cost you more in fuel each month!
Keep your licence clean – not having a clean licence can be costly on your monthly or yearly insurance premium. Drive sensibly and at the speed limit to avoid getting penalised!
Avoid bumpy roads and potholes – let’s face it, we’ve all squinted as we’ve hit a pothole, desperately hoping it’s not caused any damage. Where possible, make sure you avoid nasty bumps and holes in roads as these can damage your tyres, alloys and even the underside of your car.