How to slash your driving costs

Owning a car is an essential life cost for many of us and is often the second biggest expense after housing. In this article I share my top tips on how to slash your driving costs.  

The cost of owning a car in the UK is reported to be around £3,834 per year. This includes expenses such as fuel (£800+), insurance (£600-£700), and repairs (£500). Depreciation (the value your car drops in value each year) is also a significant factor, averaging £1,391 per year. Electric vehicles tend to have higher initial costs but lower fuel and maintenance expenses.  

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How to save money on buying a car

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This is something I recently experienced, having just replaced my car. The car sales manager knew I was a financial journalist and said he feared me! First tip: go in ready for a negotiation. 

Do your research 

Buying a car is a large, considered purchase and it’s important to do your research first. Do you want to buy a new car or a used car? Websites like Autotrader are useful at giving you information about the price you should be paying for your chosen car, also the value of your car you might be trading in. 

When you’ve decided on the car, think about how you are going to buy it. Do you have cash available to buy it outright; will you take out a traditional loan; will you consider a PCP finance agreement (where you pay a monthly amount with a balloon payment at the end to own the car or you return it); or a lease agreement (where you pay a higher monthly amount and repay the car in full). 

Negotiate on price

Get ready to negotiate on everything – the price of the new car, the price of the car you might be trading in, the APR rate on the finance deal, and even a full tank of petrol when you collect the car.  
For my recent car purchase, I negotiated a £4,000 saving. I negotiated the price of the new car and the value of my traded-in car; repair costs of the traded-in car were written off; cashback was given; a tank of fuel was given upon collection of the new car – and I got a good APR deal on the finance for the new car. This took three hours to negotiate with a lot of back and forth – but it worked. Always negotiate, and be prepared to walk away. 

Of course, Boundless members have the added advantage of access to deals on new cars with Griffin, which means they can save thousands of pounds on a variety of makes and models. It takes a lot of hassle out of buying a new car and means you can get all the features you want. You can find out more about those Griffin deals here. If you’re not already a Boundless member here’s where to learn about its two great membership options. 

Cut your fuel costs

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Your car's fuel type makes a dramatic difference to your monthly costs. A self-charging hybrid car could provide a great halfway option, requiring no charging device at your home. It’s my current choice of car, saving money and doing my bit for the environment.  

If you’re considering electric, there are some excellent-value car tariffs with energy companies such as Octopus Energy, which offers low rates for nighttime charging. It’s also worth checking out its Electroverse app to see where your local chargers are, what they cost, and if you have plenty nearby (you don’t have to be an Octopus customer to use it). But be aware that you’ll need to pay around £1,000 if you want to install a fast charger at your home. 

For petrol and diesel vehicles, you can use fuel price apps such as Petrolprices.com to search for the cheapest petrol station nearby. And whatever you do, avoid motorway service stations wherever possible as petrol there can cost between 20p and 30p more per litre.  

Drive efficiently 

Photo: Getty Images

If you’re not already aware that the way you drive affects your fuel efficiency, this is well worth knowing. Maintaining a steady speed, avoiding rapid acceleration and braking, and using cruise control on motorways all improve fuel efficiency as well as road safety, so will save you money. 

Speaking of fuel economy, don’t forget to remove unnecessary items from your car boot (it’s easy to leave things in there, out of the way) – the more weight you carry, the more fuel you use. 

Car maintenance 

While it can sometimes be tempting to let it slide if time or money is tight, keeping your car well-maintained with regular oil changes and servicing every 10k miles or year, will usually save you money in the long run. And do check your tyre pressure regularly, as per the car manual, to improve fuel efficiency and extend tyre life.

Find the best deal on car insurance and breakdown recovery 

When it comes to annual renewal, make sure you shop around, don’t just let your insurance auto-renew. You can find my article on car insurance here, but in a nutshell, make sure you compare quotes from multiple insurance providers to find the best deal. Comparison sites are really useful here – they’ll save you time and will cover lots of insurance companies at the same time. 

There are many variables that will save you money on your policy. Getting your job title right is a significant one, as is lowering your annual mileage, using a black-box tracker, and parking in a garage or driveway. Of course, you must be honest with your answers as you may find any claim is nullified if you’ve given information that’s incorrect. 
It’s worth considering protecting your precious no-claims discount just in case of a claim on your policy.

And a little-known way to save on your insurance if you’re a low-mileage driver is to consider pay-as-you-go insurance. I do this as I drive around 7,000-8,000 miles per year, I pay around £300 per year for my insurance rather than the averages quoted in the introduction of £600-700. 

Discounted cover for Boundless members

If you’re a Boundless member, you can also factor in taking advantage of discounted car insurance and breakdown cover with LV=. 

Alternative options: car clubs and car sharing 

If you don’t drive frequently, a car club like Enterprise Car Club might be more cost-effective than owning a vehicle. These are pretty straightforward to use: you find, book, and unlock your car or van using their app, booking vehicles in advance or at the last minute. You book by the hour or by the day, so you only pay for the time and distance you need a car for. I think it’s a brilliant alternative to owning a car. 

Boundless members can get their first year’s membership with Enterprise Car Club for £10 and will receive a £20 credit, too. Find out more about these savings here. 

Once you’re aware of them, there are many ways to save on your driving expenses, whether you just want to save a few pounds here and there or make more significant reductions. Happy driving!   

Do more with Boundless

If you're working in or retired from the public sector or civil service, Boundless has two great membership options to choose from: Boundless and Boundless Plus. With Boundless, you get unlimited access or discounted entry to many of the UK’s top attractions, including Kew Gardens and Wakehurst and WWT centres across the UK, as well as year-round deals on restaurants, holidays, shopping and much more.

With Boundless Plus, you can enjoy additional benefits including unlimited access to Historic Royal Palaces sites, National Trust for Scotland places, access to The Ramblers' extensive walking community, and peace of mind with roadside assistance and local recovery by LV= Britannia Rescue.