Ways to Cut Down on Car Costs
Written by
Cara Bradley
7 min read
Updated: 09 October 2024
The overall annual cost of running a car in the UK is approximately £3,500.
With this figure in mind, it’s perhaps unsurprising that, between January 2023 and January 2024, one in seven motorists in the UK had considered giving up driving due to rising costs.
In addition, car insurance premiums are also 14% higher than last year and both diesel and petrol costs have soared by 10p per litre.
Fortunately, there are various ways to save money on your car, including making use of comparison sites, swapping to a different model, and adopting fuel-efficient driving habits.
1. Do you really NEED a car?
When calculating your car costs, you should first ask yourself if you really need one. While the idea of going vehicle-free may seem incomprehensible to some people, you should take the time to reassess your situation – you might be surprised by how little you actually use your car. For example, if you work from home, either full-time or hybrid, now may be the time to reassess your transport needs.
Does your local area have decent public transport links? Have a think about all the places you regularly travel to, such as the supermarket, friends’ houses, restaurants, the cinema… Could you easily reach these places either on foot, bike, or via public transport? If so, you may wish to calculate the price of public transport against your current car costs and work out whether it may be more economical to ditch the car.
We’ll look into ways to save money on travel further down the page.
2. Join a car club
Have you decided that perhaps a car of your own isn’t necessary anymore? Don’t worry – you can still access vehicles when you need them.
Car clubs enable drivers to lease vehicles as and when needed, by the day or even by the hour. You’ll usually need to sign up for an annual membership first. Depending on the company you register with, your membership fee may include things like fuel, servicing, and breakdown cover. You may be expected to pay mileage, as well as an hourly/ daily rate, but again, this will differ between companies.
A quick Google search will show you any car clubs in your area.
3. Limit your journeys
If becoming a public transport or car club convert isn’t for you, there are still many ways to save money on your car costs, such as limiting the number of journeys you take.
Do you regularly hop in the car to drive up the road for a pint of milk or ferry the kids to their nearby school?
Approximately 60% of car journeys taken in the UK are under 5 miles. Why not pledge to tackle these journeys on foot instead, even if it’s only one day a week?
Good for your health, good for the environment and good for your wallet – winner!
4. Car sharing
If you and one or more of your colleagues regularly commute the same way to work, you might consider a car-sharing scheme. Typically, you’ll take it in turns to drive each other to work, cutting back on your individual fuel consumption.
The same sort of scheme could be used by parents on the school run, if walking isn’t something you’re able to consider.
5. Buy a more fuel-efficient car
According to Cinch, these are the most fuel-efficient cars to buy in 2024:
- BMW 330e
- Toyota Prius
- Suzuki Swift
- Toyota Corolla Touring Sports
- Hyundai IONIQ
A more fuel-efficient car could save you money in the long-term; however, you will, of course, need to factor in the initial outlay of buying a new vehicle and whether doing so is right for your circumstances.
6. Fuel-efficient driving
Fuel-efficient driving encourages certain techniques that could limit your fuel consumption, which is not only good for the environment but your wallet, too.
The Energy Saving Trust have provided some examples of fuel-efficient driving, such as:
- Avoid idling. Allowing your engine to idle contributes to harmful CO2 emissions.
- Clear your boot and remove your roof rack. Excess weight can eat into your fuel consumption.
- Stay within the speed limit. This is a legal requirement, of course, but sticking to the speed limit will also help to reduce the amount of fuel you use.
- Maintain a good distance between you and the car ahead. This will minimise the need to use your brakes. Harsh breaking can use up fuel and could damage your car.
- Take your foot off the accelerator when going downhill or slowing down. Make sure you remain in gear.
- Turn off your air conditioning if you don’t need it.
7. Compare fuel prices
Use comparison sites to scope out the best fuel prices in your area.
On the Go Compare website, you’ll be asked to provide your postcode and specify whether you’d like to view petrol or diesel prices. This will then generate your results and will reveal where the cheapest fuel can be found, as well as detailing the cost per litre and how far away you are from the location.
8. Compare insurance
Comparison sites are also useful when it comes to finding the best deal for your car insurance.
Remember, you’re under no obligation to stay with your current provider once your contract comes to an end and are well within your rights to shop around for a cheaper deal.
If you do find a better-priced policy, it may be worth letting your current provider know. Businesses don’t want to lose customers, and they may agree to match or even better the quote you’ve found. This could be a good option to consider if you’ve been happy with the service you’ve received from your existing provider.
9. Compare parking
Use JustPark to find the cheapest parking spots in the UK. Simply type in the postcode of the area you’re travelling to and select the dates and times that you need parking – you can arrange the results by cheapest first.
Homeowners can register their own driveway with JustPark, so the spaces you see may reflect private homes as well as public car-parking facilities. If you’re planning to park up for a number of hours or overnight, you may prefer the security of leaving your car outside somebody’s house, rather than in a public place.
10. Stay on top of servicing
Many of us will be able to relate to the following scenario…
You’re happily driving along, when your car suddenly starts making a strange noise.
With weeks to go until payday, you’re really not in a position to be forking out for expensive repairs, so you turn a blind eye to the noise and hope for the best.
While it can be tempting to ignore a problem in the hope that it will resolve itself, doing so could actually end up costing you more money in the long run.
Keep on top of servicing and have any little niggles checked out straight away before they potentially turn into bigger issues.
11. Wash your car yourself
If you’re looking to reduce costs, trading the garage car wash for a DIY job could be a cost-effective swap.
It’s imperative that you use a car-washing mitt - while it may be tempting to just grab an old towel or sponge, these could scratch your vehicle.
Car shampoo is also a necessity. You should never use washing-up liquid or household soap on cars, as this could strip the paintwork.
If you DO ditch the car...
If you’ve made the move to get rid of your car, you may be wondering how to save money on travel.
We’ve gathered some tips for thrifty car-free living below.
- Single fare-cap on buses. In England, many bus operators are offering a £2 fare-cap on single journeys until December 31, 2024. You can check here to see whether your local bus company and routes are involved in the scheme.
- Railcards could save you up to 1/3 on train travel. Certain railcards are available to families, students and young people, seniors and those who are classed as disabled. You can browse through the different types of railcard here. While you’ll be required to pay an upfront fee for your card, this is likely to pay for itself after a few journeys if you regularly travel by train.
- You’ll save money on train fares if you travel off-peak, which is something to bear in mind if you’re able to work flexible hours. Peak times vary between operators but are usually outside of common commuting times. Weekends and bank holidays are classed as off-peak all day.
- If you’re making the same train journey multiple times a week, a season ticket could help you save. Opting for a yearly, monthly, or weekly season ticket could bring down the overall cost per journey.
2. Bike2Work Scheme
Swapped your car for a bike? Check to see whether your employer is registered with the Bike2Work scheme. If they’re not registered, you can ask them to consider signing up.
As an employee, once on the scheme, all you need to do is sign up on the official Bike2Work website, receive a PIN from your employer, and choose a new bike from one of over 2,000 participating stores. Once you’ve picked your bike, you’ll be given a quote, which your employer will receive as an invoice. Both you and your employer will need to sign the hire agreement. Your employer will then make the payment, and you will receive your voucher. The final stage is the best bit: you get to exchange your voucher for your new bike!
You’ll pay back the cost of your bike through salary sacrifice each month. Because the money will be taken from your gross salary, you will pay less Income Tax and National Insurance.
3. Hire out your driveway
We talked about JustPark earlier on in our guide. If you’re a car-free household and you have a private driveway, you could bring in some extra income by renting out your space. JustPark state that their top-earning hosts make over £4,000 a year.
The information contained in this article is meant as a general guide and does not constitute or should be taken as advice.
October 2024
