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Car Expenses 
 
   
 
  

The running costs of a car can be considerable. After taking into account purchase, depreciation, insurance, servicing, VAT, tax, breakdown cover and fuel, the RAC believes it costs the average Ford Focus owner nearly £442 each month (assuming he drives around 12,000 miles each year). That's £5,302 each year to run a small family car. If you have two cars consider surviving with one. Selling a car is capital-gains tax free, so it would be a twin-win.

 

 About

DetailPotential Annual Saving

Fuel consumption

For the cheapest cars to run see here for petrol and here for diesel. According to the RAC's annual Motoring Index Report, the average motorist clocks up 12,000 miles each year. The average family car does about 10 miles to the litre, and average petrol prices are around 90p per litre. So average annual fuel costs for an average car come in around £1000. But the range of fuel consumption rates amongst car makes and models varies from mpg 10 to mpg 70. Switching to a more economical vehicle could typically save you £500 a year.

Typical saving £500

Speed

If your driving unavoidably involves high motorway mileage then be aware that if you drive at 70mph rather than 80mph it will typically save one litre of petrol for every 20 miles. If you do 10,000 motorway miles a year, that's a saving of nearly £450.

£450

Car Club

Own a car that only gets occasional use, such as to the supermarket, or just at weekends? Or live in a city centre where parking is restricted and costly? Either way, joining a car club instead could save you between £1000 and £1500 a year. How it works: pay a monthly fee (in some instances), book a car in advance for the time/days you need it, pick it up from a designated bay not more than 10 minutes walk from your house and access it by a smart card. There are rural car clubs as well as city ones, though they are more rare. There is a saving to the environment as well, as the Bristol Car Club has calculated that every car in the club has replaced at least 4.5 cars in the Bristol area.

£1250 plus benefit to the environment

Cutting Fuel Consumption

it's possible to cut your car's fuel consumption by up to 50%, doing the following:

 

Chipping (or engine remapping): have a specialist compnay such as Econotune tinker with your car's onboard computer software to coax extra power and increased fuel economy out of it - this can save up to 16% in fuel consumption.

 

Keep your tyres correctly inflated (3% saving), turn off the air con (8%), take your roof rack off when not in use (2%) and de-junk the boot and interior to travel lighter (2%).

 

Drive more efficiently by slowing naturally rather than breaking, accelerating gradually without over-revving and driving in the correct gear (up to 20%).

 

Use fuel comparison website, PetrolPrices, to locate your cheapest local or commute-route petrol station, then use it as often as is practically possible. Based on the typical motorist consumption of 21 litres of fuel per week, the average saving from doing this is £54 annually.

 

Keep Moving is a site that lets you check the traffic and avoid the jams before you set off on a route, and also indicates where to find the cheapest fuel all the way along the route. Call in on the site before you leave on a long journey and you should save both time and money.

Cut fuel consumption costs by up to 50%

Car Ads

Drive round with adverts on your car through Ads On Cars. You will be paid (up to £200) or offered free petrol for every full month you have an Ad on your car. Details here. They assess eligibility on a case by case basis - you don't need to be up and down the motorways each week.

 

Another such site has sprung up in Comm-Motion, which will pay you up to £220 per month for a full car advert wrap, or less for a partial wrap (e.g. just doors). You need to sign up and give details of your car and the trips that you typically make in it. They will then try to match you with an advertiser who wishes to promote in the area that you drive.

 

To qualify you need to have a reasonably new car in good condition and be prepared to wash it every fortnight once sporting an advert. As for the routes you usually drive, advertisers will be looking for good visibility for their advert, so using your car on a daily city commute will attract more 'work' than using it only for occasional trips in a rural area.

 Make up to £220 per month

Breakdown Cover

Roadside Rescue for you in any car for 12 months for £9.99

 

Get 12 months roadside rescue cover (standard rescue cover without home start) with the RAC by going through Quidco and buying it on-line at RAC. The normal RAC 12 month policy is £44, but the on-line purchase discount reduces it to £34.99, then Quidco offer £21 cashback. If you don't have a Quidco account, see our Cashback page for details. NB: RAC membership is person based; it covers you whilst travelling as a driver or passenger with any vehicle.

 

Comprehensive cover for you and your spouse in any car for 12 months for £36

 

Get 12 months Rescue, Onward Transport and Home Start cover for £36 through Autoaid's Pay-And-Claim service. Far cheaper than the comprehensive policies offered by the likes of the AA and the RAC, the difference is that you pay for your breakdown costs up front, then Autoaid reimburse you within 14 days. It covers the person, rather than the vehicle, and spouses are added to the policy for free. NB: Home breakdown cover is limited to £65 and only covers labour and recovery not parts.

Save up to £75 

Car tax

You may claim exemption from vehicle excise duty (car tax) if you're getting one of the following: the higher rate mobility component of the Disability Living Allowance or the War Pensioner's Mobility Supplement. In addition. all vehicles, except buses and lorries used commercially, that were constructed before 1 January 1973 are exempt from the tax. Electrically propelled vehicles and electrically assisted pedal cycles are also exempt. For common private / light goods vehicles registered between 1973 and 2001, those over 1549cc engine size are charged at £180 per year whereas those under 1549cc are only liable for £115. But for vehicles registered since 2001, the tax is applied in a sliding scale based on CO2 emissions. The cheapest therefore include the Toyota Prius (£40 tax), Citroen C1 and Toyota Aygo (£40 tax for petrol versions, £50 tax for diesel). Full list of tax rates here.

Save £180 by going pre-1973 or electric, or save £140 by going green.

Servicing & MOT

Save money by using an independent garage rather than a dealership, but seek out a personal recommendation to ensure you don't pay inflated prices, particularly if your automotive knowledge is thin. The cost of servicing a car at a main franchised dealers' is almost double that of the price for the same work at an independent garage, according to research by Motor Warranty Direct. The standard MOT price is £50.35 which covers most vehicles but the full list is here. An MOT test is required every year on every active road-going vehicle that is more than 3 years old - though electrically assisted pedal cycles are exempt.. 

 Cut your servicing costs in two

Lift-share

Lift-share and reduce your transport costs by up to £1000 a year. If there is no travel-with-others scheme at work or in your local community then try the liftshare website.

Save up to £1000

 

 


 

Go by Bicycle instead

 

It is recommended that you engage in at least 30 minutes of moderate physical activity at least 5 times a week. Cycling to work is an effective way of achieving this. It has been shown that those who cycle just 4 miles a day can boost their aerobic fitness by 17% and reduce the risk of heart disease and obesity by 50%. Whatsmore, in central London, the average journey times for 4 miles are as follows: Bicycle: 22 minutes; Tube: 30 minutes; Car: 40 minutes; Walk: 90 minutes.

 

Fancy bagging a bicycle for just £10? Bumblebee Auctions is the Police's auction website for lost and stolen items that are not claimed. As bicycles are commonly stolen, they are one of the most featured items on the site (current count at time of writing: 40 bikes listed), meaning you can often be successful with bids of as little as £10.  

 

 


 

Or by Electric Bike

 

Could you swap a car for an electric bike (an electic motor assisted pedal cycle)? If your daily travel range totals less than 30 miles then the models listed below could manage tht range on a full (5-hour-ish) charge. The motor will give you speeds of around 15mph, which you can then top up with your leg power.

 

The purchase cost of a new electric bike is just a fraction of a new car; there is no requirement for MOT, insurance or road tax; and the charging of the motor consumes as much power as a single 100 Watt bulb does.

 

Here are 4 top-rated models - don't go for cheaper options, otherwise you will find range, comfort and performance are all compromised.

 

Ezee Liv - £595 from 50cycles

Gazelle Easy Glider - £1460 from Gazelle

Airnimal Joey Move - £1500 from Airnimal

Jalkhoff Agattu - £1250 from 50cycles 

 

Or Electric Scooter

 

There is a new electric scooter bike from China being retailed through Firebox in this country for £1000 - see here. The Ego Electric Street Scoota looks like a motorbike but runs silently on electric.

 

A full charge takes 8 hours and costs around 8 pence in total - peanuts. This will then power the scooter for approx 40 miles, at a top speed of 30 MPH. If you are using a car for a relatively short commute or have a second car that is only used around town, switching to the Scoota could be very financially beneficial, not to mention the green credentials. Check out the details:

 

It is exempt from road tax.

It will require no MOT until it is 3 years old.

It will cost £100-£200 for annual fully comprehensive insurance.

If you have a full UK driving licence from before 2001 no compulsory bike training is required, otherwise this costs £70 and can be done in 1 day.

The 8 pence cost to fully charge the bike (your only fuel cost) works out at over 1000 miles per gallon equivalent fuel efficiency.

And the bike retails at just £1000 new.

 

Or Electric Car

 

If the G-Wizz's 40 mile range makes an electric car an impossible option for you, then take a look at Californian company Telsa Motors who are leading the motoring pack on the timeline to produce electric cars with workable ranges, practicality and style.

 

The company is about to start UK production of its £92,000 electric sports car based on the Lotus Elise. It has a driving range of 200 miles from an overnight charge. But look out for its 4-door four-seater coupe vehicle due 2010 expected to retail for £32,000 - that's the car that should be a practical and affordable option for those looking to reap the benefits:

 

An overnight charge will costs peanuts - the fuel works out at less than a penny a mile.

The vehicles will be virtually silent.

The vehicles will produce no emmissions.