If nothing else, one thing's certain in 2007: things aren't going to get any cheaper for the motorist. Insurance and fuel costs, the two biggest financial drains when running your motor, will climb further still. Norwich Union, one of the UK's largest insurance brokers, expects to impose rises of up to 40% in 2007, with an average hike of 16% for customers. If that doesn't sound like much in the way of a reward for your loyal custom, start shopping around. But beware. Spiraling claims means other insurers are set to follow Norwich Union's lead.
Try a price comparison website and look for internet-based operators with lower operating costs, who are better equipped to ride out market fluctuations and resist hiking premiums. Meanwhile, despite a return to health for oil productivity, stability of supply and subsequent lowered prices, the Chancellor has inflated petrol prices through more tax, claiming he only has the country's wellbeing in mind. How considerate. As you can see from the state of our congested roads, it's had an immediate effect.
So, what's the answer to beating 2007's used car price hikes? Try downsizing. An increasingly popular option among those without an ego the size of their car, buying a smaller one means you pay less in the first place, and then suffer less road tax, won't be charged as much by insurers and can enjoy 50mpg fuel-sipping economy. An added perk is less money to be lost to the dreaded depreciation.
Factor in ever-increasing levels of quality, refinement, practicality and safety the Honda Jazz and Nissan Note perfectly proving the point and downsizing has never been so attractive.
