So many people out there are looking forward to getting their first car.
They know it’s not going to be cheap, but they’re convinced it will be worth it. But I know a few people who wish they hadn’t bothered learning to drive. Owning a car is more expensive than you might think!
Here are the costs you should consider when you’re thinking about getting a car.
Finance
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Finance options are helping more and more people buy their first car. But be careful not to jump at the first offer that’s made to you. You have to consider the rates and fees that come with the option you’re looking at. Even something with “0% APR” might come with a hefty fee at some point.
Insurance
Everyone dreads the price of insurance. Everyone who’s learning to drive is afraid that it’s going to be an uncomfortable figure. Well, it’s not always as expensive as people expect, but it’s hardly cheap, either.
Your average driver is going to be spending in the region of £600-900 a year on car insurance. Of course, the best way to save on insurance is to drive as safely as possible. Frequency of claims, as well as dangerous driving, will be factored into your insurance quotes.
Repairs
If you drive your car for an entire year without once needing a repair, then good on you. But most people won’t make it a year without something going wrong. Much of the time, it’s something minor that they can fix themselves. But over the course of five years, there’s bound to be something that the experts are going to have to deal with.
The key to saving money here is in keeping your car correctly maintained. You also need to look for a great site that can help you find effective repairs for a good price.
Parking
Some people get really lucky and rarely have to pay for parking. They’ll have a nice parking space near their home that they can use for free – they may even have their own garage or driveway. They have a parking space at work that’s provided to them gratis. They may not even take their car to work. But I doubt they’ll be able to avoid parking fees all the time. The average cost of parking over the course of a year can be anywhere from £100 to £200.
Fuel
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Of course, how much you spend on fuel will depend on what kind of car you drive. You might have a car that has incredible fuel economy. You might be driving an electric car, so you won’t even have to worry that much about the whole thing. But most people still drive cars that run on regular fuel and that aren’t very green. For these people, the cost of fuel usually hovers around a grand a year.
Value
Don’t trick yourself into believing that the car will pay for itself. It’s extremely rare that a car increases in value. A popular saying is that a car starts losing value the second it leaves the lot. Your car is going to begin losing value the second you start driving it. (Which, presumably, is a few seconds before it even leaves the lot.) A lot of people will have to consider this when considering overall costs.
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