Driving Down The Cost Of Car Ownership
By Paul McIndoe
Anyone who owns a car knows just how expensive it can be. Hardly a week goes by where one oil firm or garage doesn't raise the price of their petrol, while motorists live in fear of the next Budget, as it's often inevitable that the cost of road tax is liable to be increased. All the while, the potential of your car suffering a breakdown could mean a costly repair looming in the future.
However, while some of the costs associated with motoring are outwith the motorist's control, there are some areas they can be address to help keep the cost of motoring down. In fact, many motorists could make substantial savings if they take the time to shop around for better deals when they consider buying a new car, or renew their car insurance.
Often when buying a new or used car, motorists tend to arrange their finance through a dealer's finance company. But, while this can be convenient, it is important to remember that the interest rate may be higher than a personal loan obtained through a High Street lender, or online broker. As a result, it is often worthwhile to obtain quotes for your car loan from more than one lender to ensure that the interest rate and repayment terms are suitable. Bear in mind also, that although, the interest rate offered by a dealer might be higher than that of a High Street lender, the car dealer might offset this by offering other incentives, such as an extended warranty or free servicing as part of any deal.
Many motorists elect to change their cars to coincide with the launch of a new registration, with yearly increments in the registration marque taking place each March. Unsurprisingly, this is the most popular month for a new car purchase, and March 2007 accounted for 1 in 5 of all new cars bought that year. However, as new marques flood the forecourts at premium prices, the second-hand market can yield some excellent bargains as owners use their old cars to part-finance their new vehicle purchase. This can also be true when a manufacturer launches an updated or restyled model, and motorists who are prepared to wait can make substantial savings around these times.
However, one drawback of new registration marques
and new models of car is the fact that they can sometimes increase the price of car insurance premiums, and along with other mitigating factors such as claims against uninsured drivers and unrecoverable losses, motorists might find their car insurance goes up slightly each year despite them never making a claim on their own policy.
Despite the rise, many motorists often accept the rise without question; perhaps down to loyalty to the provider or apathy surrounding the possibility of having to shop around. However, with the car insurance market remaining highly competitive, car insurance providers will often try to match or better quotes obtained from other companies. As a result, it often pays dividends to spend some time searching for a better deal. Go online, for example, and use any one of the many comparison websites to check the current market and gain an idea of how much you could save by switching cover, or enlist the aid of an insurance broker who can do all the searching for you and advise on the best quotes available.
Motoring is expensive; although some factors which affect the cost of motoring can't be controlled by the motorist, there are still some areas, such as
car loans and car insurance, where the customer is still King, and by taking time to shop around could save a King's ransom.
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Paul McIndoe is an online, freelance writer from Scotland. When not writing, he enjoys playing golf and is a keen gardener.
