Cool it with a hot hatch to save cash

As motoring costs slide ever upwards, drivers are searching for more ways to cut the price of their car insurance. swiftcover.com has discovered that drivers can help reduce their premiums by opting for standard models, rather than ‘hot hatches’. Opting for a sporty model instead of a standard version of the same car can cost more than twice as much to insure, even for experienced drivers.

A 30 year old man driving a VW Golf GTi would shell out over £1,000 compared to under £500 for the more standard Golf S. Because of their higher performance, insurance claims figures show that hot hatches and sports models are more likely to be involved in accidents, cost more to repair and more often fall prey to thieves, all of which pushes up the premiums for even the safest of drivers. In fact ‘hot’ models cost on average £500 a year more to insure than more standard versions of the same vehicle.

So don’t choose a new car based solely on looks and engine capacity - it can leave you paying out considerably more. In particular, thinking about different models or cheaper cars can help keep insurance premiums lower and more affordable for younger drivers, helping to build up a no claims bonus to keep costs consistently low.

Buying a Second Hand Car

Times are tight and even with the Government offering you money to ditch your old banger, buying a brand new car can blow the budget for many people. Buying a second hand car could save you a load of cash – despite a heavy decline in new car sales over the last couple of years, used car sales have remained strong in comparison – but beware because you could also end up buying into a headache. Almost one in five people have experienced problems after buying a used car, according to the Office of Fair Trading (OFT), with the used car market consistently featuring amongst the top of all consumer complaints to the OFT over the past three years.

So the key to getting the right car at the right price is to do your research first. Ask your friends and read up with car magazines or online at sites like www.autotrader.com and www.autocar.co.uk. Try and decide what make and model of car you are after so you can find out as much about it as possible and also ensure you are not tempted by something unsuitable, such as buying a sports car when you’re really in the market for a family motor.

Ask some important questions about the model you’re after: Is it reliable? How much does it cost to maintain? What mechanical problems does it suffer from? How much fuel does it use and how expensive it is to insure?

To find out what you should be paying for a used car, look up its ‘Book’ price. This is a guide price telling you what the motor industry would pay for a particular kind of car, as well as the price a private buyer should expect to shell out. The Book will also include variations based on higher and lower mileages, as well as the condition of the vehicle. This kind of information will ensure you don’t pay over the odds for your new car.

The best know guides are Parkers and Glasses which you can view online at www.parkers.co.uk or www.glass.co.uk. If a car is well above the Book price, you’re likely to get a raw deal, but beware if the price is a lot cheaper – if it seems too good to be true, it probably is.

Don’t be afraid of asking for some help if you don’t know your way around an engine – ask a friend to check the car for you, or invest in an independent car check to make sure you are getting a good deal, such as those offered by the AA. You might also want to get a credit check or an HPI check – these cheap checks will identify whether there is any outstanding finance on the car, or whether it has been written off. Check the car’s V5 registration document and service log, and make sure the car’s VIN or engine number matches that on the registration document.

You can also have a look at our video guides as www.youtube.com/swiftcover - the bottom line is get as much information as possible to ensure you buy a bargain, not a banger.