Car Ownership Costs
Buying and running a new car has never been more expensive. Factors such as depreciation and rising fuel and insurance costs add up to a hefty total. Cars are regarded as a significant contributing factor to climate change and global warming and many manufacturers are putting initiatives in place to encourage people to consider swapping to more environmentally friendly cars. Evolution Money has posted their new Infographics highlighting the True cost of owning a car, making drivers aware of all the costs when looking to purchase a new car.
So what could you do to keep the costs down when looking to by a new car?
If you're in the market for a new set of wheels, buying a green option could help both the environment and your finances. For all intents and purposes a green car equals a tax-free car. Going green could save you a significant amount of money every year. You are also likely to benefit from lower insurance premiums and fuel costs so it really is a win-win situation.
Save money and trees
'Green cars' that are exempt from road tax are those that produce less than 100 grams of carbon dioxide per kilometre. Cars such as these are among the best value to buy and the cheapest to run in general. Hybrid cars are designed to be powered by a combination of an electric battery plus petrol so that they use less fuel.
Many insurance providers offer discounts for green vehicles to encourage their use. You could be looking at around a 5% reduction, which adds up to a sizable saving over a number of years. Other incentives from insurance companies include the offer to offset your CO2 by planting trees or by making a contribution to a green charity.
Green friendly cars are designed with fuel efficiency as a priority, so you will find running one could substantially lower your petrol bill. According to ‘Fuel Economy’ the average cost of fuel per year for a standard Ford Fiesta hatchback is £1,059, and with fuel prices continuing to rise each year, fuel efficient cars have never looked more appealing.
If you live in or near London the congestion charge can be a drain on your finances. Owners of many tax-free cars are not required to pay it, so if you regularly commute into London this could add up to a great saving. 'Plug in' electric cars and some hybrid models are also exempt from the congestion charge and may be able to park for free in London. To find out whether your car is eligible, check with Transport for London.
The single most important factor in reducing your costs as a car owner is to buy second-hand, which will allow you to sidestep the horrors of depreciation. For those looking for a car loan, Evolution Money a specialist secured loan provider could help you get the finance you need.