Oct 012018
 

New car checklistFor many young people, owning a car is a rite of passage. But, with so much choice available and with many young people on a tight budget, selecting the right student car can be tricky.

Warranty Direct has put together some helpful tips to help student motorists make the right decision, from buying your first car to beyond.

Where to start

When looking at potential vehicles, you can be tempted to go to the first car that catches your eye. However, it’s important to keep your budget in mind when choosing what’s right for you.

Firstly, you need to decide whether to buy a new or used car. Although initially more expensive, newer cars are normally more advanced in terms of safety, technology and fuel efficiency. This could save you money in the long-term.

On the other hand, a new car can lose around 40% of its value in the first year, so you may be left out of pocket when you go to sell it later.

Statistics also show around one-quarter of young drivers are involved in a crash within two years of passing their test. So with this in mind, it might be more cost-effective not to purchase a brand-spanking new vehicle until you have a little more experience on the roads.

Don’t get caught out with insurance

For the majority of students, expensive car insurance is far from ideal. Drivers aged between 17-24 can expect to pay over £1100 for their insurance policy.

Limited driving experience and a greater likelihood of being in an accident account for this high rate. However, there are ways for students to keep their insurance costs down.

For example, adding a more experienced named driver on a student’s insurance policy can shave an impressive 13% off their insurance premiums.

Younger drivers can make further financial savings by opting for a black box insurance policy. This is where the insurer fits a telematic tracker – which records speed, braking and cornering behaviour – to your vehicle.

 In fact, according to recent figures, 60% of the cheapest black box deals are for under-25s, compared with 50% two years ago.

Factor in reliability

It’s important students know what they need from a vehicle, not just what they want. Factors such as safety, cost and reliability need to be considered; particularly if you’re facing a lengthy commute from home to your new student accommodation.

Look out for vehicles with low repair and maintenance costs and features such as light steering and user-friendly controls.

Using tools such as our Reliability Index to see which vehicles are the most reliable could help you avoid expensive maintenance issues further down the line.

If you’re willing to look beyond flashy alternatives, the trusty Ford Fiesta is a good bet for students on a tight budget. The Fiesta scores highly in the reliability stakes and suits the needs of most young motorists.

Fuel for thought

For cash-strapped young drivers, one of the major drawbacks of owning a car is the cost of keeping a vehicle on the road.

With fuel costs rising, it’s worth looking out for the most fuel-efficient models on the market.

It’s also important to account for vehicle tax, MOT tests and the general cost of upkeep for your new vehicle. On average, it costs around £472 to maintain a used car over the course of a year.

It might be worth considering Just Add Fuel options which combine finance, breakdown, servicing and tax costs into a single monthly installment if your heart’s set on a brand new vehicle.

Owning a car can give you your first taste of ‘grown-up’ responsibility, so it’s important to think wisely if you want to experience the joy of the open road on a student budget.

Sep 102018
 

New car showroomThere comes a time in a car owners’ life when it’s time to say goodbye…it could be a change in lifestyle, high maintenance costs, or just because you fancy something new. Whatever the reason, be sure you’re getting the best deal and not left out of pocket when buying your next car.

Looking to upgrade to a newer model?

Read our Warranty Direct guide on getting a swankier car, for less.

The benefits of upgrading

The advances in car technology are progressing at such a fast rate that if you stick with your current model for too long, you could miss out on new features that make driving both easier and safer.

Not only this, but cars depreciate quickly and after three years you could lose up to 60% of your vehicle’s original value.

So, when looking to upgrade your car, one of the first things you need to do, is to look at its current and future market value to make sure you upgrade before it’s too late.

Out with the old

Before buying your swanky new motor, you need to work out what you’re going to do with your old vehicle. Trade-in offers are typically less than you’d get in a private-party sale but can be much quicker and less hassle.

To work out if you’re being offered a reasonable price on your trade-in car at a dealership, you first must know what your vehicle is worth. Do some online research, print out the results and take them with you, as evidence to help with negotiating.

If you’re deciding between two dealerships with similar offers, you may want to lean toward the one at which you intend to buy your car. This may give you some leverage since you’re giving the dealership business on both the trade-in and the car purchase.

Look for models which hold their value

You may want to look out for cars that are about to be superseded by a newer model. These ‘run-out’ models are often found with discounts of up to 30% on the original price as dealers make way for shiny new stock.

However, some models shed cash quicker than others, meaning it will be worth a lot less in only a short period of time. So, make sure you check the resale price to see if some models may slump in value when their replacements arrive, (especially if you plan to sell it on in a few years).

You can also use our Reliability Index to help you work out how likely you are to have issues with a certain make or model.

Timing is everything

Dealers have targets to meet, with bonuses up for grabs, so they will usually be more willing to negotiate and offer more attractive finance packages at the end of each sales quarter. This means buying a vehicle at the end of March, June, September and December, could get you a better deal.

Try to avoid weekends or the start of the month just after payday. A dealership crammed with wannabe buyers isn’t ideal if you want to pick-up the best bargain.

Think about finance

While low-rate finance schemes with modest monthly payments may bring newer cars within your reach, you need to be sure you can keep up with the monthly payments as missing any can affect your credit rating and your car could be repossessed.

As mentioned earlier, newer cars can lose their value quite quickly, so you may want to look at pre-owned options first.

Used cars are cheaper initially and you could get more for your money, buying a top of the range older model for a similar price as a basic spec new car.

If you go down the used car route and the original manufacturer warranty has expired, you will also need to think about getting an extended warranty in place to protect your vehicle against unexpected failure and the costs that come with it. You can always get a quote with Warranty Direct to see how we could help you.

Policies underwritten by Pinnacle Insurance plc. Arranged and administered by Warranty Direct. Authorised and regulated by the Financial Conduct Authority.

Sep 062018
 

Performance vehicle
With environmental concerns at the forefront of news stories, documentaries and media campaigns, it’s not surprising many people are now considering whether to ‘go green’ with their next vehicle.

However, if you have your eye on a certain non-eco model or are in the market for a higher performance vehicle such as a Porsche, there are still ways you can be economical and as environmentally friendly as possible. Once you have a shortlist, make sure you check out the Reliability Index to compare models. If you want to also give yourself the peace of mind that you are covered in the event of unexpected vehicle failure then why not get a quote with us today?

Either way, here are Warranty Direct’s tips on how to make sure you’re efficient, without sacrificing the enjoyment of driving a performance vehicle.

What are you looking for?

Whether price, fuel efficiency, practicality or enjoyment is your priority when buying a car, you need to weigh up your options and see which vehicle matches your lifestyle.

If you are mainly going to be using the car for city driving, which doesn’t require high speeds or fast acceleration, look at smaller vehicles with an engine size of around 1L. This will not only be a practical size for urban driving, it should work out to be more economical than a larger engine.

If a small engine is constantly used at high speed, it’ll need to work much harder than a large engine to keep the car moving at 70mph. This will increase fuel consumption and could lead to greater long-term wear and tear as the engine’s components are put under strain.

So, if you do a lot of long distance or motorway driving, choose a car with a larger engine, which provides a good mpg.

Eco-driving

If you can’t help but go for a high-performance or sports car, there are still ways you can limit your fuel consumption to save money and cut pollution.

Get your car serviced regularly to make sure it’s running well and always use the right specification of engine oil, which you will find in your handbook. Check your tyre pressures at least once a month and before any long journeys, as under-inflated tyres will cause your car to use more fuel to overcome the added resistance.

Driving smoothly, accelerating gently and reading the road ahead to avoid breaking unnecessarily will all reduce fuel consumption. Stick to the speed limit, as not only is speeding dangerous it also uses more fuel.

Technological advances

Due to advances in engine technology, some of today’s smaller engines are able to produce more power than some bigger, older engines due to turbocharging. When looking at buying a new car, research into models such as Suzuki’s BoosterJet or Ford’s EcoBoost, where there is little or no sacrifice in power or style.

Some manufacturers now include a ‘sports’ mode or a ‘4WD’ mode in their cars. This means you can have all the fun of a high-performance car when you want it, but the practicality of a more economic drive for everyday use.

 It’s all about the extras

Many cars now incorporate eco features, so you can get the style of car you want, but with the benefits of efficiency too. For instance, some modern cars now have LED head-lights and can even incorporate emissions sensors to help keep our air clean.

Extras which aim to improve your in-car experience can also help to improve driving economy. Many cars – even on the more affordable end – now come with cruise control and using this will not only give you a more comfortable ride, it could even save you up to six percent in fuel costs during motorway driving.

For extra savings, adaptive cruise control will speed up or slow down based on the position of cars in front.  It uses either a radar or camera system to track the vehicles ahead and adjusts speed accordingly, alleviating the need for sharp braking and accelerating.


Warranty Direct is a trading style of BNP Paribas Cardif Limited. BNP Paribas Cardif Limited is a company, registered in England and Wales No. 3233010 at Pinnacle House, A1 Barnet Way, Borehamwood, Herts, WD6 2XX and is authorised and regulated by the Financial Conduct Authority, Register No.309075.

 

Sep 042018
 

Essential Driving AppsBeing able to drive is one of life’s luxuries, but, it can also bring with it a host of frustrations. There’s parking, fuel costs and car maintenance to consider (as well as the initial stress of selecting the right vehicle for you at the start.)

However, with the rise of driving apps, motorists can now enjoy additional car add-ons, without the hefty price tags.

Here, Warranty Direct shares some of the best apps to take some of the stress out of your daily drive.

Triumph over traffic

There’s nothing worse than having your morning commute to work ruined by stand-still traffic.

This is where your trusty sat-nav can come in useful, as it helps plan the best and quickest route to your chosen destination. It can also work out the best alternative route, if you find yourself stuck in a bit of a jam.

There are apps available to assist too, such as Waze. All you need to do is log the journey and destination before you start driving and, voila, a less time-consuming travel experience should await!

You can use maps on your iPhone or Android to stay up-to-date with the latest traffic conditions as well, but make sure your phone is set up as hands-free, to avoid any safety issues on the roads.

Stay on track

As most drivers know only too well, keeping a car on the road can be costly. There’s car maintenance, fuel costs, insurance and tax to think about.

There’s a lot to consider, but luckily car management apps can help put you on the right course. Drivvo is designed to help you manage the cost of fuel consumption, car maintenance expenses and service costs.

It also has an innovative feature which allows you to check fuel prices at stations nearby.

Park your troubles

Research on the cost of parking in the UK found the average motorist spends almost £2000 a year on parking. Thankfully, apps such as JustPark help motorists find a solution to this costly problem.

From work journeys to weekend trips, JustPark can provide you with directions to car parks and on-street spaces, plus information on availability and restrictions.

It also offers 20,000+ reservable locations, so you can book parking in advance too.

With the average Brit spending an estimated four days every year looking for parking spaces, this app could bring an end to hours of parking woes.

In a dash

According to a recent AA study, dashcam usage has rocketed from 1 to 15% in just four years.

One of the reasons behind this boom is because these small cameras (usually mounted on the dashboard or windscreen of your car) document crucial evidence that could protect you in the event of a car accident.

Not only does dashcam footage help in the event of an accident, but some insurers are offering motorists discounts on their car insurance premiums if they have a dashcam installed.

While the reliability of dashcam apps greatly depends on the quality of your smartphone, they can give drivers additional peace of mind.

Breaking it down

Sometimes it’s hard to know what condition the internal components of your car are in. Unless a fault happens, you won’t know and if it happens suddenly, it could take away your control over your vehicle.

Warranty Direct recently teamed up with Engie to help put control back in your hands with its diagnostic device.

By connecting its Bluetooth device to a car’s computer via the OBD2 port, it can transfer data such as daily vehicle diagnosis, journey data and more to the accompanying smart phone app.

In the event of a malfunction or an upcoming vehicle service, the Engie app can also help aggregate real time quotes from nearby mechanics as well; helping you save money during your vehicle ownership.

We believe the Engie device and app brings more control to vehicle owners and allows them to talk directly to their cars. As such, we’re offering an Engie device to new and renewing customers for FREE*.

*Subject to Warranty Direct and Engie terms and conditions. See warrantydirect.co.uk for further information.


Policies underwritten by Pinnacle Insurance plc. Arranged and administered by Warranty Direct. Authorised and regulated by the Financial Conduct Authority.