5 Easy Ways to Cut Car Costs in 2025

Running a car in the UK isn’t cheap anymore. According to NimbleFins, the average cost of car ownership hit £3,357 a year in 2025, that’s up 4.1% from 2020. And Leasecar’s research shows costs have jumped over 80% in the past decade. That’s a hit millions of families are feeling.

So, we’ve put together some simple, practical tips to help you save money, without cutting corners on safety.
 

1. Get Ahead of Car Problems

Why wait for things to break when you can stop them breaking in the first place?

Quick weekly checks can save serious money. Make sure your tyre pressure’s right, motoring groups reckon that alone cuts fuel waste by 3%. Top up your oil. Check other fluids. It takes five minutes and could save you hundreds in the long run.

Also, local mechanics often charge way less than main dealers for the same jobs. Just make sure to keep all your service records, they really matter when it comes time to sell.

Got a big repair coming up? Consider using a platform like ClickMechanic, it makes it easy to find trusted local garages and mobile mechanics that come to you. You’ll see upfront prices, read real reviews, and avoid any unexpected markups. It’s a simple way to book reliable repairs without paying main dealer rates.

2. Make Money from Your Empty Driveway

Parking in cities is expensive. We’re talking £100+ a month, easy. But what if your driveway could help pay for your car instead?

If you’re not using your space all day, every day, someone nearby probably needs it and they’re sick of paying high rates at car parks. Renting your driveway at a fair price can be a win-win.

Stashbee makes it easy. You list your space, connect with local drivers, and start earning. It’s ideal if you work from home, don’t use your car much, looking to make passive income or just want to put that space to better use.

Plus, Stashbee handles all the payments and contracts so it’s completely hassle-free.
 

3. Shop Around for Insurance Every Year

Car insurance prices are all over the place, even for the same cover. But that’s good news for people who shop around.

Start with comparison sites, but don’t stop there. Some insurers offer better deals directly. Bumping up your voluntary excess can shave off 10–15% from your premium.

Paying annually instead of monthly also saves money, those payment plans can cost you an extra £50–£100 a year in interest. And watch out for pricey extras like courtesy cars, check your home insurance first; it might already cover you.

Another trick: if you can, get added as a named driver on a family member’s policy. It often works out cheaper.

4. Use Fuel Price Trackers and Change How You Drive

Fuel prices keep jumping around. Petrol recently hit 136.9p per litre, with diesel at 142.9p. But how you drive makes a big difference, whatever the price.

Heavy-footed driving, sharp braking and speeding up fast can burn through fuel fast. It can use up to 40% more in stop-start traffic. And the more weight you carry, the more you’ll spend. Every extra 50kg can increase fuel use by 2%.

So, empty your boot, take off unused roof boxes or bike racks, and combine errands when you can.

Apps like PetrolPrices help you find the cheapest places to fill up nearby, often with differences of 10p or more per litre. Well worth it if you’re on the road a lot.

5. Time Your Big Spending Right

When you buy or repair your car can make a bigger difference than you might think.

If you’re looking to buy new, the best deals usually show up in March, September, and December, that’s when dealers are trying to hit their targets and manufacturers start offering incentives.

Used cars are the opposite - prices tend to drop in winter, when fewer people are looking. Come spring and summer, demand goes up and so do prices.

For repairs, don’t wait until something completely breaks. Catching warning signs early can save you from much bigger bills. And always get a couple of quotes. Many garages will match prices if you ask.

Conclusion

None of these tips require big lifestyle changes, just a bit of forward thinking.

With a bit of smart maintenance, making use of your driveway, switching up your insurance habits, improving fuel efficiency, and timing your spending, you can cut your annual costs by hundreds.

Car ownership doesn’t have to drain your bank account. Treat it like a series of small decisions because that’s where the savings stack up. Start with one or two changes, and go from there.

The costs might be going up, but that doesn’t mean you can’t stay one step ahead.