If you want to buy a car, it’s important to be prepared for all of the different costs that are involved with car ownership. Buying a car is likely to cost you more than simply paying the selling price as you will also need to consider other expenses such as fuel, insurance, tax, maintenance, and even getting your car washed. If you are buying a car for the first time, all of the different expenses involved can be overwhelming at first. So, here’s a breakdown of all the various things you can expect to pay for, to help you get started.
Car Cost
Once you have decided to buy a car from independent car dealers Edinburgh Dunwell Motor Group, there are various ways to pay for it. You can either pay the entire cost of the car upfront or take out some kind of finance deal. Either way, you will need to make some kind of upfront payment. Even if you decide to finance the car, you will usually need to pay some kind of deposit before you can drive away in it. Alternatively, if you want to avoid paying a deposit, you could consider taking out a personal loan to fund your car purchase. If you decide to get finance or a personal loan to pay for your car, it’s important to be clear on what your monthly repayments are going to be.
Insurance
One of the most important costs to consider when buying your car is insurance. Without insurance, you will be driving illegally, so you need to make sure that this is in place before you drive the car home – most dealerships will cover you for the drive home, but double check. Your insurance cost will be based on how much of a risk insurance companies perceive you to be and can be paid either annually or monthly.
Tax
Check how much vehicle tax you will need to pay using the Gov.uk website. The cost will depend on your car’s tax band, which is based on their CO2 emissions, and ranges from zero to over £1000 per year.
MOT
Getting a yearly MOT is another cost to factor in when you buy a car. When a car is over three years old, this needs to be done annually. The test usually costs around £40-60, and if your car fails its MOT, you will be obliged to pay for any necessary repairs before you can drive it again. Along with an MOT, it’s also worth paying to have your car serviced.
Fuel
Another ongoing payment to consider is fuel. You can use the fuel consumption tool on the Gov.uk website to get a rough idea of how much your car will cost to run. Most people budget a weekly amount for fuel, but this might vary depending on how much driving you do.
Parking
Finally, don’t forget the cost of parking. Most car parks these days charge a fee, and if you need to park outside your house on the road, you might need to pay for a resident’s permit.
The cost of buying and running a new car can quickly add up, so make sure that you are prepared for all the additional expenses once you’ve bought the car.