Regardless of whether you’ve decided to upgrade to a newer model or you’re buying a car for the very first time, there are a number of costs to consider.
Buying the car
There is more to a car than the purchase price alone and it’s important to consider any ongoing costs as well. For example, you’ll need to invest in car insurance and breakdown cover. You’ll also need to put a small amount aside for MOT expenses, repairs and any extras you may require.
Don’t be fooled by the advertising price
If you’re attracted by the price of a brand new car, you must always be prepared to pay a little more. The advertised price will often be the price of the least expensive model available – this often equates to the most basic version.
This may mean a lower engine size, a different colour to what you desire, manual controls or 3 doors as opposed to 5 doors.
Extras such as ABS, optional leather seats, automatic controls, a CD player and a drinks holder will all come with an additional price tag. A car initially advertised at £12,500 could quickly mount to £15,000 on the road when fitted with all of the extras.
From petrol expenses to road tax, running a car can be costly to say the least; especially if you intend to use it on a daily basis.
Then there are parking fees to consider. Parking your car in a city centre can cost anything between £7 and £20 per day and certain cities also require entrance fees and toll charges.
What to take into account
Other running costs will often include maintenance and servicing expenses (certain garages can charge up to £100 per hour), insurance and roadside assistance and registration fees.
How to buy a car
Unless you’re lucky enough to have the cash at hand, buying a new car may require a little help. From investing in a small loan to purchase a car to opting for car finance, there are a number of ways to fund a new vehicle, many of which offer flexible lending terms.