Downsizing your car to stay within budget
Times are tough these days as the financial crisis is kicking in slowly and most people are already feeling the pinch. Some people have stopped using their cars because of high petrol and maintenance costs while others are struggling to make ends meet in that respect. If after planning your bills, you find that you are only left with little money to spare on insuring and running your vehicle, then it is worth looking into downsizing your car so that you stay within your budget.
What you need to remember here is to carefully plan your expenses against your income. The budget that you do needs to include things which are an absolute necessity for yourself and other things which you would like to have but are not really of high importance. Once all this is done, you will be able to calculate how much money you are left with for other stuffs.
If you need a car for your day to day activities, then you will need to have insurance cover no matter what, otherwise you risk spending more than you bargained for. However there are things which you can do to lower the amount that you pay for the running costs of your car like fuel, car insurance and maintenance. Say your budget allows you to spend £300 for keeping your car and you are currently paying £550 for your family car, then it is worthwhile changing to a smaller car which will be easier to run. This will definitely decrease the costs of the premiums you pay in car insurance and for day to day running of the car.
By aligning your budget needs to the vehicle you drive, you will be making full use of your disposable income. What this means is that if you have budgeted a total of £300 for the privilege of having a car, then you can look into those cars which will cost this much to insure and run. Factors like your current circumstances, for example how much driving experience you've got, where your car is kept at night, if you have any no claims discount will still be the same but having a car with a smaller engine will definitely reduce your car insurance quote. You can also choose to go on Third Party, Fire and Theft cover instead of getting comprehensive cover to reduce the costs further.
One more thing to remember is that you should never stick to just one insurance company just because you've been with them for a long time as loyalty does not really give you discounts in the insurance industry. So for better deals on car insurance renewals, always shop around for the best quotes. You'll be surprised at how much money you can eventually save. And by downsizing, you'll actually save more on petrol to allow you to stay within your budget better.
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