If you’ve made a budget for the coming year and want to stick to it, one of the key points alongside your home, food and bills will be transport. And for many of us, that means running a vehicle. Of course, I’d always recommend buying a used car (more on that later) and it’s easy to find nearly new and approved cars from your local dealership such as the KAP Motor Group if you’re looking for a reliable and economical vehicle, whether that’s a used Nissan car or a family estate. Let’s get started on saving money on your motoring…
Calculate the costs
The first step to ‘bettering your budget’ is to calculate what the actual costs of owning and driving a vehicle are, including these essentials:
- Road tax (some vehicles are exempt)
- Car insurance
- MOT
- Fuel
- Servicing, maintenance and wear and tear
- Cleaning
You’ll notice that this list doesn’t include the cost of buying a car. That’s because it’s such a variable option – you may need to get a car loan, or a hire purchase agreement or may be able to buy your car outright. More on budget buying below…
Once you have these ongoing costs all totalled up, that will give you a clear idea of what size of vehicle you can afford to run or even if you would be better off using public transport instead. You can download a monthly budget planner from my resources library to help you to calculate your budget and see where you could potentially cut costs.
Sometimes, when you add it all up, using a bike or getting a travel pass for buses or trains might cost less than your regular vehicle running expenses, thereby cutting all of these costs out of your budget and saving money overall. But that might not be a practical option – especially if you live somewhere rural like me where you’d be waiting days for a bus to come!
Ways to cut those car costs
So, if you need a car to get around, there are ways you can adjust those ongoing costs before you even choose what car to buy, such as:
- Check the fuel economy of the vehicle – a newer vehicle might use less fuel per mile than an older vehicle.
- Likewise, check the costs of diesel vs. petrol.
- Consider the rates of vehicle tax, which varies massively, depending on the age of the vehicle and is based on the amount of CO2 emitted per kilometre, ranging from the lowest band A to M, and the yearly price varies accordingly.
- Some zero-emissions cars are tax-free and some vehicles over 40 years old are tax-exempt (but may have more maintenance costs).
- Cost of servicing and MOTs – does it need to serviced be at a specialist garage or can you have work done locally?
- Whether the parts for the make and model of the vehicle are more expensive, thereby costing more to repair and maintain.
- Insurance premiums can be reduced by choosing a smaller less powerful car or a vehicle of lower value.
- You may also be able to lower your insurance by putting a cap on the number of miles you’ll drive each year. If you know your normal commute distance and what other trips you’re likely to do, you should be able to calculate your annual mileage – but always add plenty extra for unexpected trips!
Buying your vehicle
What I would always recommend is that you should always choose a secondhand vehicle. The trouble with buying a brand-new car is that it immediately depreciates in value as soon as you drive it off the forecourt. You’ve lost potentially thousands of pounds straight away.
So, I would always go for a secondhand option and that opens up the market to different options – not just those pricey new car showrooms. I’ve previously shared the things I wish I had known when buying my first car so it might be helpful to have a read of that blog post too.
Consider these factors when you’re buying your vehicle:
- The initial purchase price – the lower the better.
- You can get an interest-free agreement rather than a loan on which you pay interest.
- Can you buy a secondhand vehicle with your savings rather than getting a loan or hire purchase and therefore save money on the interest you’ll pay?
- You may be able to negotiate a better deal on the purchase price if you pay cash rather than taking out finance on the vehicle.
- Buying from a private owner rather than a dealership to get a lower price – but always fully check and test drive the vehicle, look at the service and MOT history and make sure you’re confident with the quality of the vehicle as there’s no comeback on private sales.
- See if you can get a warranty from the seller – especially if it’s a dealer or a local garage.
- Does someone in your family or group of friends want to upgrade their vehicle and sell you their car for a mate’s rate?
Once you have all this information to hand about the cost of buying a vehicle, along with the ongoing expenses of owning and running a car, you should easily be able to calculate what type of transport fits into your monthly budget and that’ll inform your decisions, whether it’s a small secondhand car, a larger but more economical vehicle or even a travel pass for the local bus company.
Let me know in the comments below if you’ve been able to save money on your travel costs and I’d love to hear about any unexpected savings you’ve made on running a vehicle to better your budget. Thanks! 🙂
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This article is a sponsored collaboration. The pink links in the content indicate a sponsored link or information source. The blog post reflects my own experience and the sponsor hasn’t had any control over my content 🙂
