According to the AA and Auto Express’ Driver Power 2015 satisfaction survey, a new car will cost on average £2,559 a year. We take a look at a breakdown of the costs of running a car and how you can reduce them.
The first cost that you have to contend with is the initial cost of the car itself. Because there are a number of ways of getting a car in this day and age, you’ve got to figure out which is the best option for you. Before purchasing, make sure you know your budget and whether you want to own a car, as this will help you make a decision on the best payment solution for you.
If you choose to get in contact with us at motorfinance4U, we can make sure that you get the best deal on your car finance, by working with lenders to arrange the most suitable finance package based on your own individual circumstances.
Depending on your age and experience, insurance can be a pretty hefty sum. While the cost does reduce over time, it is an important cost that must be included in the budget. To make sure that you get the best deal, use price comparison sites and approach companies directly for quotes. Make sure that you haggle when your renewal date comes around, as you can really bag yourself a bargain.
A mechanical warranty is the most important consideration after your car purchase. It is designed to help with the cost of repairs, including replacement parts, labour and VAT.
While it is not a legal requirement, breakdown cover is something that comes highly recommended. 24 hour, 365 days-a-year service for you to contact should your vehicle experience a breakdown.
Tax is calculated according to the carbon emissions of the vehicle that you’ve bought. Some vehicles, ones that emit less than 100kg/km of CO2, are exempt from the tax altogether, whereas vehicles that produce more than 150kg/km are taxed £185 for the year. It can make a huge difference to your budget.
The maximum amount that you can be charged for an MOT is £54.85, which you have to pay out once a year. It makes sense to try and get an MOT with a council run test centre, where they don’t do repairs, and so have no vested interest in failing your car. You can then find the best value garage to carry out the repairs and save yourself some money.
The costs of your car will very much depend on the car itself, the fuel you use and the way you drive your car.
Use the regular fuels as opposed to the premium ones, because they are more expensive and it makes little difference for the standard car.
For instance, if you drive smoothly, like accelerating without over revving and slowing down naturally, then you will use less fuel without reducing speed.