What Are the Expected Costs of Buying a Car
Cost is usually a major factor in deciding what car to buy. Of course, if you can’t afford it, you won’t be able to buy it. Meanwhile, there are other essential factors that you need to consider when planning to buy a car.
Apart from the obvious purchase cost on the car, there are a few other things you need to consider in order to determine the impact of the expenses on your wallet.
In this article, we will provide a brief explanation on some of the factors you will need to consider when buying a car so you can have a glimpse of the impact a particular car will have on finances.
Obviously, there will be a purchase price regardless of whether you’re buying the car outright or on finance. Owning or leasing a car will certainly cost you a certain amount of money. But, there are other essential costs other than the purchase price.
What will be the residual value of your car in few years? It is imperative for you to consult industry guides or check out online reviews to learn a few things about the resale value of the car you’re intending to buy. You need to understand that cars with high rates of depreciation will cost you a lot more in the end.
You need to also consider the fuel consumption rate of the car you’re planning to buy. This is important because the rate at which your car consumes fuel will have an impact on your expenses. For instance, if you drive 15,000 miles a year with a fuel cost of £1.20 a litre, where car X does 32mpg and car Y does 33mpg, you may not see any significant difference in the first year in terms of cost, but the difference can add up to £230 extra spent on fuel within the space of 3 years.
Prior to buying your dream car, try checking the insurance group which the car falls in. This is because the higher the number, the more your yearly payments will be. When planning to buy a car, the place where you’re going to keep your car, where you live, how far you will be driving, where you work and your motoring history will all have an impact on your insurance costs.
Service, Maintenance and Repair
The costs of service, maintenance and repair are other factors to consider when buying a car. These costs can vary massively, which may depend on the car type as well as on the mileage you do, including your driving style. You should, however, note that cars from premium manufacturers may attract higher cost each time you visit the garage compared to those from cheaper manufacturers.
You must also take into consideration your vehicle tax. The amount you’re going to pay in vehicle excise duty (otherwise called car tax or road tax) will depend on the car’s age as well as its engine type. If you need more information on this, you can visit this page to find out more about tax bands.