Driving can be a very expensive activity. In many cases, it’s easy to be surprised by the expenses involved – because the forms taken by those expenses can be so varied and hidden.
Let’s take a look at some of the key costs of motoring, and what can be done to mitigate them.
Depreciation: The Silent Value Drop
Over time, most vehicles tend to lose their value. This is called ‘depreciation’. It’s often most acute during the early stages of a vehicle’s time on the road. A given car might lose a third of its value in the first year or so. The mileage of the car, along with its make and model, will all influence the rate of depreciation.
If you’re shopping on the used market for a classic car, you might find that the asset actually appreciates over time. But what really matters is that you have a realistic idea of what the depreciation will be. In most cases, a ‘nearly new’ vehicle will represent the best compromise between features and long-term cost.
Fuel Consumption: Beyond the Pump Price
The price of fuel will naturally determine how much you pay for it. But you might also consider the fuel economy of your vehicle. This can vary not just according to the vehicle itself, but to the way it’s being maintained and driven. You’ll use up less fuel, in other words, if you drive more slowly and avoid harsh braking and turning. Tyre inflation, oil levels, and servicing schedules will all make a difference, too.
Insurance Premiums: Factors and Savings
Insurance is a legal requirement if you’re driving on public roads. However, the price you pay for your insurance might vary according to a number of factors, including your driving experience, the location of your residence, and whether you’re willing to drive around with a black box device fitted to the vehicle. Advanced driving courses might also be helpful, in the long term.
Maintenance and Repairs: Unexpected Outlays
If your car suddenly breaks down, then it will need to be repaired – promptly, if you’re relying on the vehicle for work. It’s usually more affordable to address problems early on. Look to protect the car with a warranty, and make sure that the mechanic you’re choosing is reputable and reliable.
Accidents and Legal Expenses: Being Prepared
When you drive on public roads, you run the risk of being involved in an accident. This might result in legal fees, as well as increased insurance premiums. You can pursue a claim in the aftermath of an accident, in order to be compensated for the costs involved. Many accident solicitors working in this niche will operate on a no-win, no-fee basis – which might make it more affordable, and less stressful, for the claimant.
Taxes and Regulatory Charges: Staying Compliant
Driving on public roads also requires paying road tax. This comes not just in the form of Vehicle Excise Duty, which is set to be widely hiked in April 2025, but from congestion charges, toll roads, car parking, and a host of other small charges that might easily accumulate over the course of a year.
