Bad Credit Guide to Surviving the
‘War on Motorists’
The cost of owning a car is continuing to soar, with fuel prices, car insurance, tax and even parking costs on the rise, it’s never been more important to consider ways in which you can reduce your motoring expenses.
“All of the UK’s 34 million drivers have seen their finances hit in recent months by rocketing prices,” said Andrew James, spokesperson for Bad Credit Loans 4 You, a UK finance specialist at sourcing car loan credit and car credit for bad credit /bad-credit-no-credit-car-loans.html
“It’s not only inflation and the New Year tax increases which have caused some to enter bad credit, but poor road maintenance has lead to drivers requiring car loan financing or bad credit car finance to pay for damage to their vehicles.”
Despite the transport secretaries pledge after taking office last year to ‘end the war on motorists’, initiatives have so far done little to reduce the burden of climbing running costs to bad credit drivers.
We’ve culminated some ideas to help you survive the 'war on motorists' without falling foul of bad credit debt, leaving you some extra cash for holiday spending money, to pay wedding expenses or go towards a debt consolidation loan:
Fuel - An unavoidable cost
Research by leading comparison website, Moneysupermarket.com, found record fuel prices were forcing drivers to change their driving habits, with 62% of respondents claiming to have reduced the amount of time they spend behind the wheel.
5% stated they had stopped driving altogether because they were unable to keep up with the rising costs or car loan credit and other expenses.
Since the beginning of 2010, average petrol pump prices have risen from just under 111p per litre to almost 130p as a result of sky-high oil prices, volatile currency exchange rates and the recent VAT rise to 20%.
“Owning a car is now considered a necessity for most people, but the constant increase in fuel price is making it hard for them to stay clear of bad credit, plus its crazy to think the government takes 63% of the price in tax,” said Mr James, of Bad Credit Loans 4 You.
“It's about time the government looked closely at the petrol prices problem and takes action before bad credit debt across the country becomes unrecoverable."
To cut down on your fuel usage, try:
■ Removing any roof or bike racks when they aren’t in use as they add extra drag and make the car less aerodynamic.
■ Clear any unnecessary items in your car. The more weight you travel with, the more fuel you use.
■ Keep an eye on tyre pressure. An under- inflated tyre puts strain on the engine and requires it to use more fuel.
■ Accelerate gradually instead of pulling away sharply from standstill and leave a decent gap between you and the car in front to allow time for breaking gently. Both will save you petrol.
■ Make sure you use the correct specification of engine oil and get your car serviced regularly to maintain an efficient engine.
■ Create a free account at www.petrolprices.com and find out the cheapest fuel prices in your area.
Potholes - A drivers worst enemy
“Three harsh winters in a row has caused many British roads to crumble and produce costly and sometimes dangerous driving conditions,” said Mr James, of Bad Credit Loans 4 You.
“Lasting snowfall, freezing conditions and heavy rain have all contributed to some of the worst driving conditions thinkable and we’ve had to rescue clients with car loan credit help so they can afford their car repairs.”
Figures show the average insurance claim for pothole damage to cars is around £1,300, with the most expensive claim handled by the AA within the last year topping £14,000.
Road maintenance budget cuts of 20% mean local authorities face an uphill struggle to repair all the potholes, prioritising main roads for repair.
To cut down on your chances of a bad credit pothole incident, try:
■ Taking extra care on secondary roads and when the road is wet, which might conceal water-filled potholes. Grit and stones on the road surface may indicate the presence of a pothole nearby.
■ When you spot a pothole, make a note of where it is and the approximate size and depth, taking a picture with your mobile phone if its safe to do so. Then make sure you report it to the relevant authority (usually county or local council) as drivers cannot claim for damage to their cars caused by a pothole unless the authority has been made aware of it.
■ If you are unlucky enough to hit a pothole, stop as soon as possible in a safe place for a check of your car to keep the amount of damage to a minimum. Check the tyres and wheels visually, getting a professional to take a closer look if you are concerned, but keep any receipts to support an insurance claim if necessary.
Insurance - Essential expense
According to price comparison site Confused.com, the cost of car premiums rocketed by 38.2% in 2010, taking the average premium to £695, nearly £200 more than they were at the beginning of 2010.
“Many young drivers are finding they can’t afford car insurance without the help of car loan credit or car loan financing,” said Mr James, of Bad Credit Loans 4 You.
“Some bad credit families have resorted to ‘fronting’, whereby parents add children to their policies as named drivers, but this fraudulent act could invalidate their insurance and lead to a criminal conviction.”
There are a few ways you can lower your bad credit car finance requirements for insurance premiums, including:
■ Use comparison websites such as moneysupermarket.com or confused.com to shop around for a good deal
■ Buy a smaller, low powered car in a cheaper insurance category
■ Think about fitting an approved immobiliser, as this often earns a discount on the standard premium price
■ Increase your voluntary excess
■ If the value of the car is low, consider a third party fire and theft policy.
■ Avoid modifications, they can drive up the price.
■ Paying for your premium up front instead of by installments often lowers the price
■ Finding a safe place to park your car, such as a driveway or garage, is considered better than leaving it on the roadside and will lower your premium.
■ Don't overestimate your mileage as many insurers take this into account when quoting a premium. You can always contact your insurer to adjust mileage should you find you're using the car more than previously predicted.
Tax and CO2 emissions
Since it was linked to CO2 emissions five years ago, car tax has sky rocketed, with owners of the least green cars in tax band (M) having experienced a 164% rise in the cost of their car tax.
In contrast, the cost of car tax has dropped significantly for motorists whose cars emit less CO2, but this tiered form of taxation tends to hit bad credit families hardest.
“Families who are struggling with bad credit and are lent or given an older used car face a possible vehicle tax bill of £435 a year compared to just £20 for a low emission car,” stated Mr James, of Bad Credit Loans 4 You.
“The price of greener vehicles is currently sky-high and something which would require a larger auto car loan, even though many manufacturers are producing them currently at a loss just to gain market share.”
To promote greener cars, the government is offering limited subsidies of up to £5,000 for purchasers of ultra-low carbon vehicles, including the Nissan Leaf, Autocar’s Car of the Year 2011.
More can be found out on www.dft.gov.uk, but until greener cars become more financially accessible to anyone apart from the wealthy, tax and CO2 emissions will continue to squeeze precious penny’s from bad credit families.
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
/bad-credit-motorbike-loans.html
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Notes for Editor:
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Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
