The article below was posted on News.com.au (by Alex Tilbury). It is write-up on how to avoid the economic squeeze of owning and driving a car. The reason it appears on this blog, is because it gives Pay As You Drive as one of the solutions to this problem!
Easing hip-pocket pain for motorists
By Alex Tilbury September 08, 2008 12:00am
OH NO, the fuel light is blinking again, and it only feels like yesterday that you filled the tank for about $75, the price for an average 50-litres.
People who drive a lot have been smacked hard by soaring petrol prices and are holding out hopes of lower prices as the world crude oil price drops down to $US107/barrel.
CommSec chief equities economist Craig James said recently that he expected petrol to drop to $1.40-$1.45 a litre, from close to $1.70, saving the average family about $30 a month.
But outside forces aside, there are simple steps motorists can take to lower their fuel bill.
Supermarket savings
The first and easiest way to ease the hip-pocket pain at the bowser is to take full advantage of petrol discounts from the major supermarkets.
Most commonly they equate to 4 a litre off the pump price at branded service stations if you have spent $30 or more on your groceries.
For a small car it may not seem like much but for a petrol guzzler that does a lot of kilometres it really adds up.
The competition watchdog has been looking into the so-called petrol price cycle and asking why petrol seems to spike dramatically over school holidays and at Christmas/Easter time.
The Australian Competition and Consumer Commission found the petrol cycle tends to show a sawtooth pattern, whereby prices rise rapidly over a short period and then steadily decrease, with "Cheap Tuesday'' the best day to buy during the week.
Tyre power
Keeping your car's tyres inflated to the manufacturer's recommendation will lower drag on the road and wear and tear. Your best bet is to buy an accurate tyre gauge, because the ones at service stations get knocked around.
If you don't use it, lose it
Many people use their car boot as extra storage space, and that's adding unneeded kilos to the car's weight. This reduces fuel efficiency by about 2 per cent for every 50kg.
Roof racks not in use should also be removed to lower wind resistance.
Remove heavy items such as golf clubs or even bulky prams that you don't need every day as they weigh the car down and add to fuel use.
Cool air
Avoid using airconditioning whenever possible. Airconditioning reduces fuel economy by 10 to 20 per cent when operating. Use the air ventilation system instead. However, at speeds of over 80km/h, airconditioning is better for fuel consumption than an open window.
Cheapskate
Mother of three Cath Armstrong who founded the website http://www.cheapskates.com.au only buys cars that are 12 months' old. They still have that new car smell and they are under warranty but "we are not paying full price and most of the glitches have been worked out''.
"Driving smoothly will help with your fuel consumption, so keep the revs under 2000 and you'll save petrol as the higher the revs your engine uses more fuel,'' she says.
"Avoid braking a lot and short journeys, too. Also, combine your trips, if you are doing the school run, that's when you also go to the post office or shops. Don't make lots of separate journeys.''
Comprehensive insurance
It's a huge bill each year, upwards of $1500 for a four-wheel-drive owner.
And if you have RACQ or Suncorp comprehensive insurance, give NRMA Insurance a buzz at renewal time. The cheeky southerners reckon if they can't beat your current insurer's renewal price, they will send you $50 for wasting your time. Too easy.
Many insurers offer a slightly cheaper car insurance premium to female drivers, because claims data shows women are safer drivers.
Pay As You Drive
An ideal solution for people who catch public transport and don't drive their car often or have a second or third car they use sparingly is http://www.payasyoudrive.com.au.
Underwritten by Real Insurance, part of the Hollard Group of companies, PAYD relies on the customer reporting the odometer reading in their car.
A 35-year-old female driver living in Corinda who drives an automatic Toyota Corolla hatch 2008 with an agreed value of $20,700 normally would pay insurance of $505. If she drove 5000km, the PAYD insurance would cost her $309, and at 10,000km the premium would be $399. A saving of $106 to $196 a year.
4WD = deep pockets
Owners of large, powerful four-wheel drives definitely pay for the privilege.
The RACQ's annual survey of private motor vehicle expenses shows big sports utility vehicles cost owners anywhere between $16,000 and $21,000 a year to own and operate.
Light cars at the other end of the motoring scale come in at the much more affordable $6600 to $8600.
The automatic LandCruiser turbo-diesel took survey honours as the most expensive vehicle to own and operate in Queensland, at $405.16 a week or whopping $21,068 a year.
By contrast the Hyundai Getz 1.4 litre manual hatchback, right, cost its owners a relatively modest $126.41 a week or $6573 annually and qualified as Queensland's cheapest car.
The motoring organisation surveyed the costs associated with 60 popular vehicles based on a five-year ownership period under average operating conditions for motorists travelling 15,000km a year.
RACQ vehicle technologies executive manager Steve Spalding says the cost of running a typical family sized car is now about $12,000 a year -- or 80 for every kilometre.
Unleaded and premium petrol have increased 29 per cent and 27 per cent respectively with diesel skyrocketing by nearly 40 per cent since 2007.
Excesses
You can sometimes save on comprehensive car insurance premiums by increasing the excess you would pay if you had to make a claim.
But NRMA Queensland state manager Brett Robinson warns drivers need to make that decision based on their own financial circumstances.
"If you opt for a higher excess you need to ensure you're in a position to cover the cost if you make a claim,'' he says.
Hybrids
The RACQ reckons hybrid cars do not stack up too well on economic grounds due largely to their substantially higher purchase price and the consequent effects on standing cost components.
"The petrol Civic is cheaper to own and run than the hybrid variant and the petrol-driven Corolla was cheaper than its closest equivalent of Prius hybrid,'' Mr Spalding says.
"It's doubtful if consumers will flock to buy hybrids unless their pricing is more closely aligned with equivalent petrol models or there are other financial `offsets' to improve their economic attractiveness.''
Suncorp also offers an eco-friendly motor vehicle insurance discount of 10 per cent on their premium for comprehensively insured hybrids powered by a combination of electricity and one or more other fuel types, such as the Toyota Prius or Lexus 450 GHS.
NRMA Insurance offers customers a saving of up to 10 per cent on their comprehensive car insurance for driving a recognised fuel efficient car.
Drive a hard bargain
One savvy car buyer is Lee-Ann Brighton, an internet marketing guru who wrote the ebook 'How I saved $39,856 in two years just by asking for a deal.'
She says the first thing in any negotiation to remember is "be prepared to walk away''.
"If you don't like the sales person, or don't feel comfortable with the deal, or just generally not happy with how things are going, then be prepared to walk away,'' Ms Brighton says.
"There is always someone else selling the same thing -- you need to deal with people and companies you are happy with.
"I hate dealing with fools, don't you? If a person is representing a product or service, then I expect them to know what they are talking about.''
Top 10 Tips for Fuel Economy
* Drive smoothly
* Watch your speed as higher speeds consume more fuel.
* Avoid prolonged engine idling.
* Avoid peak hour and other heavy traffic.
* Use your car's airconditioner sparingly.
* Have your car serviced regularly. Cars that run more efficiently burn less fuel.
* Keep tyres correctly inflated. Tyres that are low on air pressure have greater rolling resistance and that means your car's engine works harder, using more fuel.
* Don't carry unnecessary weight around in the car as this increases fuel use.
* Consider converting your car to LPG or buying a smaller, more fuel-efficient vehicle.
* Be sceptical about the claims made about add-on petrol-saving devices available.
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