Buying a new car is something most people will encounter several times in their lives, but it’s a big financial decision to make and a lot of thought and care needs to be given to the process.
There’s so much to consider, but ultimately the main thing you need to think about is the cost of your car and how much you are willing to pay to make sure you get the car that perfectly suits your needs.
This article will highlight some of the potential costs of buying and running a car so that you can be clear on just how much you will need to set aside before you make your purchase.
Table of Contents
First things first, the cost of the car itself. Whether you are purchasing a brand new car outright or doing monthly instalments, or looking to purchase a cheaper second hand vehicle, it’s important to set out with a budget in mind as you browse.
Go into your car hunting endeavour with a clear idea of how much you are willing to spend and stick to it. It can be easy to go over your budget, but down the line, this could be detrimental as it may eat into the funds you need to keep the car running and cover other important costs.
The cost of fuel is on the increase so it’s good to get a clear picture of how much you are potentially going to spend each week to run your car. This is especially important if you are planning to use your car for your daily commuting to and from work. But you also want to think about using your car on weekends and any longer journeys you make regularly.
Insurance & Tax
It is a legal requirement that you insure your car before you head out onto the roads. There are three main types of car insurance:
- Third party
- Third party fire and theft
- Full comprehensive
You also need to make sure that you pay road tax, which is an annual government taxation payable by anyone with a roadworthy vehicle. How much tax you pay on your car will depend on the model of the vehicle and how much CO2 it emits.
The above need to be taken into consideration when purchasing a new car, as they are unavoidable costs that may increase on an annual basis.
Once you have purchased your car and covered the legally required payments for tax and insurance, you need to think about how much you will pay to cover additional costs for running the car.
Some of these will include things to maintain your car, such as wiper fluid and cleaning products. You also need to think about how often you will need to replace parts of your car such as replacement sets of Dunlop tyres or other items that could be identified when taking your car for a service or MOT.
Many drivers choose to take our breakdown cover should an incident arise, which is also another additional expense you need to take into consideration.