Many people are making the decision to say goodbye to their old car for financial reasons. Handing your car over to be recycled by a vehicle scrap service will save you money, plus you will receive a payment for your scrapped vehicle. Here are fours ways being car-free for a while will help you through a period of monetary uncertainty.

Tax and insurance

Paying car tax and insurance monthly takes a significant slice out of your budget, and finding a lump sum payment for tax and insurance can be daunting at times. When you are free of these expenses, you can take a few taxis as well as walk or cycle more, saving you money. Although it is possible to avoid tax and insurance costs by getting a SORN, during a recession the value of an old car is likely to deplete very quickly. When you are in a position to purchase a new car, you can keep saving by looking for vehicles with very low tax and insurance.

Lifestyle

When money is tight, it makes sense to cut down on travel and rethink social activities. Letting go of your car allows you to rearrange your life and appreciate the simple pleasures closer to home for the time being. If car ownership is essential for your family, due to work commitments, do you still need the second one rusting away in the driveway?

Repair or replace

Everyone knows that the cost of repairs to an old car increase with age. While it is tempting to pay out one last time, this is money that could go towards a deposit on a newer car when you are ready to replace it. Balance out the cost of increasing and frequent repairs with the cost of leasing or finance on a new or nearly new car.

Extra costs

Parking tickets, service charges and cleaning bills all add up over a few months. Saving on these, in addition to fuel and oil, will leave more in your bank account for essentials. If you are asking yourself the question 'should I scrap my car?' a quick calculation comparing bus fares with fuel and parking will show how much you could save over a month.

Going car-free need not be forever. In the short term, it will liberate your finances and ease the burden. To find out more about scrapping your car, contact us at Motorwise today.