It’s never been more expensive to be a driver. Fuel prices may currently be dipping, but still remain high compared to years one by. Meanwhile, insurance and loan interest have been skyrocketing. On top of this, there are a number of hidden fees being thrown at drivers. It’s important to be on alert so that you can steer clear of these fees. Below are a few examples of hidden driving fees and how to avoid them.
Hidden car finance fees
Car finance lenders are notorious for throwing hidden fees at drivers. While most of these are outlined in the contract, they are not always obvious unless you take the time to comb through 30 pages of terms and conditions. A few hidden fees that are worth looking out for include:
- Application fees: Some lenders will charge you for applying for a loan – whether your application is successful or not.
- Settlement fees: When your application is approved, some lenders may then charge a settlement fee (on top of any deposit).
- Early repayment fees: Want to pay off your loan early? Some lenders will charge you for this.
- Option to purchase fees: At the end of some car finance schemes, you have the option to buy your car. This may come with extra fees.
A lot of PCP lenders were found to be charging discretionary commission fees up until a few years ago when it was made illegal. It’s worth noting that you can claim back these commission fees using specialist services such as this one that deals with Volkswagen PCP claims. GAP insurance fees are also something you can claim back if it was not made obvious from the onset or your insurer already provides this. Check previous contracts to see if you’re owed anything.
Hidden auto insurance fees
Auto insurance companies are also known for hiding hidden fees into their policies. Switching to a different insurer mid-way through your insurance term could come with a fee. Other insurers may even charge you if you adjust your policy midway through. On top of this there are initial admin charges and annual renewal fees to look out for. Not all insurers will charge these fees, so check terms and conditions.
Hidden car repair fees
Car repair fees have gone up in recent years. While there are honest garages out there that won’t try to rip you off, there are many that have started charging extra fees on repair bills. Some car repair centres add a huge markup on any parts they order in – if you know what parts you need, it could be cheaper to source them yourself.
Tolls and parking fees
Finally, it’s worth considering tolls and parking fees. Many toll roads now require you to pay online within a period of time – although the toll may be cheap, you could be fined a huge amount for forgetting to pay them or paying them too late. As for parking fees, always look out for signs when parking and don’t assume somewhere is free to park. Be particularly careful of car parks that offer free parking for a limited time – some will have cameras and will charge you a hefty fine if you go one second over. There are also some free car parks that still require you to print off a ticket, and will charge you if you don’t have one.