Hacks that could save hundreds on yearly car costs

It might feel like a full-time job to keep on top of admin and payments relating to your car, but putting off your car-related admin could cost you.

Common motoring mistakes like waiting until the last minute to renew your car insurance, predicting your mileage incorrectly, or misunderstanding your car finance deal could all be leaving motorists out of pocket, Motorpoint has warned.

To help drivers keep on top of their motoring admin – and hopefully save some money – Mike Vousden, Motorpoint’s car buying expert has shared seven top tips motorists should be aware of when it comes to keeping your car costs down.

Don’t miss your chance to shop around

“It’s easy to forget when your car insurance is due for renewal but letting your contract auto-renew can leave you paying more. When renewing your car insurance, it pays to shop around and compare prices a few weeks before your renewal date.

“Research suggests that the best time to buy car insurance is around three weeks before you need to renew. It’s a good idea to set up a reminder as soon as you take out your contract, so you don’t miss your chance to compare quotes in a year’s time.” 1

Set time aside to tackle maintenance jobs

“Sometimes keeping on top of all the little things we need to do can feel impossible, so it’s a good idea to set calendar reminders for annual or irregular jobs that can easily sneak up on you.

“This is a really great way to keep track of maintenance jobs that help your car run smoothly. For example, forgetting to check your tyre pressure each month will wear out your tyres faster and make your car less fuel efficient.”

Don’t fall out of sync with your car service schedule

“Although getting your car serviced might not be a legal requirement, it’s important that motorists make an effort to keep up with the service schedule set out by the manufacturer.

“This means you won't void your warranty and will also be maintaining the value of your vehicle long-term. When selling your car, having a full-service history will positively impact how much your used car is worth – giving you more to put towards your next vehicle.”

Consider paying your car insurance up front

“It’s obviously not an option for everyone, but if you’re in a position where you can pay your car insurance up front then it’s worth considering. The total cost will be a little lower than paying for insurance in monthly payments.

“If choosing to pay for your insurance in this way, you could consider putting aside money each month, so you have a lump sum ready to cover the cost of renewal.”

Make sure important emails aren’t going into your junk folder

“With so much communication now being paperless, it’s a good idea to check your email settings to ensure that important updates and reminders relating to your car aren’t being filtered out into your spam folder.

“If you feel like you’re getting too many emails from providers you work with and risk missing important information, consider opting out of email marketing so you’ll only be getting updates meant for you – this is a better idea than ignoring emails or just marking them as junk.

“Another good option is to set up an email address specifically for bills or issues relating to your car, this way it’s easy to filter through your emails to find exactly what you’re looking for.”

Plan what you want to do when your car finance comes to an end

“Buying a car on finance lets you spread the cost over a few years, but it’s important to plan for what you’re going to do when your finance deal ends – especially if you opted for a PCP personal contract purchase agreement.

“It’s worth thinking about what you plan to do when your car finance deal finishes sooner rather than later. If you decide you want to keep your car, this will give you time to start saving for the balloon payment or investigate refinancing options – where you’ll continue making payments on the remaining balance.

“If you decide to hand your car back at the end of your agreement, remember you'll be charged for any excess mileage above your agreement, and any damage beyond normal wear and tear.”

Keep tabs on your credit score

“If you have a good credit score, you’re more likely to be approved for better interest rates when taking out finance. This is particularly important if you’re buying a car on finance where different interest rates can have an impact on how much you pay overall for your vehicle.

“Even if you don’t plan on buying a car using car finance, it’s still a good idea to keep tabs on your credit score as you’ll get a better rate on a personal loan if you want to buy a car outright.

“There are free tools online that will let you check your credit score and will offer some suggestions for what you can do to improve it. If your credit score is lower than you expected and you’re planning on applying for car finance soon, it could be worth paying for a more detailed report to understand if there is anything easy, such as ensuring your address is up to date that could help improve your score.”