A car can be a major investment. There are many costs to consider beyond the list price. What’s more, if you’re a first-time buyer, many of these costs will be far in excess of what other motorists are faced with.
Let’s consider some of these costs, so that you can start to set out a budget for your first vehicle.
Insurance
In the UK, car insurance is a legal requirement for every motorist on public roads. There are many different kinds of insurance available, and thus it’s worth researching which make the best match for your needs. You can often slash your costs, for example, with the help of telematics, or ‘black box’ insurance.
Fuel
Fuel is an unavoidable ongoing expense. You’ll have to pay for every mile you put in, and you won’t be in control of the price at the pump. What you will be in control of is your fuel economy. Drive slowly and carefully, while avoiding sudden acceleration and braking. Also, consider investing in a more efficient vehicle. If you’re putting in enough miles, the investment will pay off. You’ll also slash your emissions and help save the planet at the same time, which is an added bonus.
Staying on top of basic maintenance will also help to reduce your costs. Regularly reinflate your tyres, and check their condition. Top up your oil levels, too. By getting into these habits, you’ll limit your expenses over the course of your motoring career.
Service and maintenance
An unreliable car can be a major source of financial hardship. This goes especially if you need a car to get to work. Think about checking the reliability of your vehicle, and manufacturer, using consumer surveys.
You should also think about car servicing. By getting the car serviced every year, you’ll keep it running efficiently, while making breakdowns less likely. Look for a full car service, as well as an interim car service (if you’re driving a lot over the course of the year).
Road tax
The more emissions your exhaust puts out, in general, the more you’ll have to pay in road tax. Bear in mind that road tax will change over time as new governments come in and set new priorities for getting toward net zero. To avoid road tax in the long term, the best approach may be to look for a battery electric vehicle.
