With the cost of owning a car at historic highs, drivers are taking a number of measures to keep costs down. Research from Close Brothers Motor Finance reveals the lengths motorists are going to in a bid to save money on the roads.
The most common measure for saving money is paying insurance and road tax annually to save on instalment fees, which a majority of drivers (61%) are doing. With rising congestion charges across the country, almost half (49%) are avoiding toll roads or congestion charge zones. The same number (49%) are driving less often to save money on fuel - using public transport or walking and cycling more.
Saving money on fuel is a recurring theme, with over a quarter (28%) only putting enough fuel in the tank for a specific journey. A fifth of drivers (20%) are charging family and friends for lifts, with this number set to rise with 13% saying they’re considering doing this in future.
More motorists are looking to change vehicles to save on costs, with another fifth having already downgraded to a cheaper vehicle, while 29% are considering doing so in the future. The research also finds that almost a third (30%) admit they overstretched themself financially to get a car that made them look cooler or more successful.
The research also brings road safety concerns to the fore, as a fifth (18%) have cancelled or reduced their breakdown cover, and another fifth (18%) have delayed or skipped a car service. A similar number (17%) have delayed fixing MOT advisories.
Among electric car drivers, 16% are saving on charging costs by only charging their vehicle at work, with another 19% considering doing this in the future.
Money saving measure for motorists:
- Paying insurance and road tax annually to save on instalment fees - 61%
- Driving less often to save fuel / use public transport, cycling or walking more - 49%
- Avoiding toll roads or congestion charge zones - 49%
- Only putting enough fuel in for a specific journey - 28%
- Charging / splitting costs with family and friends for lifts - 20%
- Downgrading to a cheaper vehicle - 20%
- Cancelling or reducing breakdown cover - 18%
- Delaying or skipping a car service - 18%
- Delaying fixing MOT advisories - 17%
- Only charging their vehicle at work - 16%
John Cassidy, Managing Director at Close Brothers Motor Finance, commented: “With an unpleasant cocktail of fluctuating fuel prices, high insurance premiums, widespread congestion charges in towns and cities, as well as contentious road taxes, motorists will be looking to save on the costs of running a vehicle wherever they can.
“Without doubt we are in a period where drivers are changing their habits to make owning a vehicle affordable within a difficult economic environment. Of particular concern from our research are the approaches to breakdown cover, and addressing issues with vehicles identified by MOT advisories - meaning motorists are risking their own safety to save money. Car dealers need to be prepared to support motorists in getting the right vehicles for their needs - and their smaller budgets. Education on which financial products are more suitable for certain drivers will be crucial to enable drivers to manage their finances and be able to pay their monthly payments. For example, if customers are looking to save costs by moving to an electric vehicle, there are used EV financing products available to offer.”
