The cost of motoring is about to go up substantially, if it hasn’t already. Inflation is hitting practically every expense associated with running a vehicle, including buying one off the forecourt. Things are changing fast, and not always for the better.
Fuel prices are rising. Even the red diesel price per litre has gone up slightly, so everyone is being affected, including in the business community.
In this post, we take a look at some of the ways to cut your motoring costs so you can fight back against soaring inflation.
Refinance Your Vehicle
Purchasing a vehicle on credit can be expensive. However, you may be able to refinance at a lower rate if your credit score has improved since you took out the original loan.
For example, if your credit score is 500 to 600, then you will usually pay 15 percent interest on a car loan. However, if it is 600 to 700, you could drop your interest payments to just 10 percent which is considerably better value.
Review Your Insurance
Likewise, you might find that you’re paying too much in insurance every year. Insurance companies like to slowly ratchet up their costs the longer you stay with them.
To fight back against this, go on a price comparison website and see whether there are any cheaper options available. Often if you can convince your current insurer to lower your premiums if you find a cheaper deal elsewhere.
Sell Your Second Car
Do you really need two cars? If not, then you might want to sell your second one. Think about how much money you could save if you only ran one car. By running a single vehicle, you can slash your loan repayments, cut your insurance bills and reduce your tax burden.
Another option is to simply downsize to a cheaper car. Large vehicles cost a fortune to run. It’s not just tax and fuel, but also the depreciation and maintenance associated with them as well.
Boost Gas Mileage
Another option is to boost your gas mileage – how far you can go on a single tank.
Prices for fuel are going up all over the world because of the current crude oil shortage. Filling up your tank is around 40 percent more expensive than it was five years ago.
The good news, though, is that you can boost your gas mileage by changing the way you drive. Don’t accelerate suddenly. Instead, gradually get up to speed and then cruise at between 50 and 55 mph. If you go faster than this, then you will notice that your fuel consumption starts to rise.
Cash In Your Extended Warranty
Getting an extended warranty gives you peace of mind. However, it’s also costly. Therefore, if you’re strapped for cash, you might want to cash it in.
Getting rid of your extended warranty can sometimes feel a little unnerving. However, consumer reports find that the majority of people never actually use them. In many cases, they are just a way for insurance companies and other vendors to make more money.