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FOOL'S EYE VIEW
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Motoring is BIG business in the UK. Here are some figures to show just how big: What's more, it costs almost £104 a week to own and run a typical car, taking account of depreciation, insurance, fuel, servicing, VAT and breakdown membership. In fact, motoring costs come to almost a quarter (23%) of the average weekly disposable income of £451. Another way of putting this is that driving costs about 45p a mile, based on an average annual mileage of 12,000 miles - yikes! So, without further ado, here is our guide to cheaper - and safer - motoring. (Thanks go to the AA for providing much of the advice and statistics used in this article). Choose your car carefully The make and model of your car has a huge impact on its future value: you need to be mindful of depreciation, where your car falls in value as it ages. Depreciation costs the average car owner almost £42 a week, whether the car is driven or not. Learn more here. Use a cashback credit card Everyday motoring accounts for more than a tenth of all spending on credit cards, plus many of us put our insurance premium on our plastic. If you always pay off your bill in full, why not use a cashback card to earn up to 2% back on everything you buy, including motoring expenses? Learn more here. Find low-priced petrol Our diesel prices are the highest in Europe, and our petrol prices are the third highest. About three-quarters of the pump price is government duty, with the average price of a litre of unleaded now over 78p. So, instead of being ripped off by motorway service stations, check AA Petrolbusters for the cheapest forecourt in any area - it's free! The same goes for servicing, repairs and tyres - shop around to find your best deal, because you're no longer tied to a single manufacturer or dealer group. Shop around for a bargain loan Shop around for finance: the AA reckons that we waste an average of £1,000 by not shopping around for the best loan deal! Just over half of us (51%) go to our banks, with over a quarter (27%) opting for the dealer's finance. If you're borrowing £10,000 over five years, you could save around £2,000 by shopping around - enough to afford a more upmarket model or a foreign holiday! Avoid over-priced payment protection insurance and watch out for lenders that charge early repayment penalties using the unfair Rule of 78. These will sting you if you settle your loan early - as seven out of ten borrowers do. Track down cheaper car insurance Many of us begrudge paying for insurance, especially when, according to the AA's British Insurance Premium Index, the average cost of motor insurance has almost doubled over the past seven years and may continue to climb. However, almost half of all UK drivers have made an insurance claim, so car insurance is essential, as well as being a legal requirement. Of course, it makes sense to shop around for insurance - there are loads of online 'one-stop shops' where you can get quotes from dozens of insurers. Read more here and here and try the Fool's Insurance Centre. Make sure your insurance is wide-ranging enough to meet your needs: for example, one in twenty drivers is uninsured, so an accident involving one of these offenders could cost you plenty. Incidentally, does your motor insurer offer a free comprehensive courtesy car service when yours is out of action? That's one thing that separates premium and budget policies. Over half of all drivers have the full no-claims discount. However, unless you've protected your discount, a single claim could send your insurance premium soaring. So, look after your car and your belongings... Reduce your risk of theft The AA claims that car crime increases by a sixth over the festive season. So, when your car's unoccupied, remove all valuables or lock them in the boot. Thefts from vehicles usually rise during holiday periods, so make sure you leave nothing on display to attract opportunistic thieves, especially laptops, handbags, briefcases, coats - even Christmas shopping. Furthermore, don't leave your keys lying around at home where crooks can fish them out through your letterbox. Around 340,000 vehicles are stolen every year, with over a quarter of drivers admitting that they don't always lock unattended cars. Take special care at petrol stations, car washes and car parks! Some cars are more likely to be stolen than others - learn more here (PDF file). Almost half of UK drivers have failed to fit any extra security measures to their car, such as an immobiliser or alarm, which would reduce the risk of theft and hence bring down their insurance premiums. Incidentally, if you have a garage or off-street parking, make use of it. If not, even a steering-wheel lock is better than nothing. During these cold winter months, don't leave your keys in the ignition or leave your car unattended while it's warming up, because you're begging thieves to go for a spin (and it's also an offence if your car is on a public road)! Few insurers will pay up if your car is stolen while unlocked with the keys in the ignition, which happens in about a tenth of car thefts. So, remember to "lock up every time you leave"! Get breakdown cover (and avoid common breakdown causes) Again, you can save money by shopping around for breakdown cover. Read more about how to choose this product here. Even if you're popping over to France on a one-day booze cruise, look into getting some extra cover, because an accident or breakdown abroad usually costs a mint. Here's some advice on Continental motoring from the AA. You can reduce the risk of breaking down - or having an accident - with a quick monthly check of your car's battery, tyres (including the spare and tools to change it), water and anti-freeze in the coolant tank, windscreen wash, and dirty headlights. Other common problems include faulty spark plugs, an ill-fitting fan belt and a cracked distributor cap. Drive more efficiently One way to improve your driving skills, reduce your motoring costs and cut your insurance premium is to take the Institute of Advanced Motorists' advanced driving course. It costs £85 (£75 for under-26s), but teaches better driving techniques that will reduce your risk of an accident and help you to drive more economically. Alternatively, here's a free guide to better motoring, Driving for the Future (PDF file), which includes tips on driving style and switching to alternative (and more lightly taxed) fuels. It's unsafe to drive while using a mobile phone, even a hands-free phone, because the conversation itself distracts you from driving, reduces your reaction time and hampers your ability to control your vehicle. Also, holding a mobile phone while driving became an offence from the beginning of this month, which could mean a fixed-penalty fine of £30. Read more. Plan ahead: reduce journey distances and times by using the AA Route Planner and radio traffic information and, whenever possible, avoid travelling at peak times. Finally, have you considered car sharing for everyday journeys, such as the school run and commuting to work? Road Tax (Vehicle Excise Duty) Sorry, can't help you here - just pay up and keep grumbling! More useful articles on motoring: More: Visit our Insurance and Personal Loan Centres | The Fool's Car-Buying Guide.