How Much Will Your New Car Cost You?

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In case you are currently considering changing your car, you will need to be vigilant. Not only people going through midlife crisis will make mistakes choosing a car that is completely unsuitable for their budget and needs. You might have seen a promo or spoke to a dealer and fell in love with the shape of the headlights, but how suitable is the model for your needs and your budget is what really matters. Below you will find a few costs to consider before you sign the dotted line.

car dealership

Purchase Price

Before you go out there and shop around for cars, you will need to compare the prices like-for-like. If you are planning to buy a used car, you will need to consider that you are going to pay a higher price if you are buying from an authorized dealer than if you are risking buying private. Check out the deals offered at and compare the different offers.  You might get free servicing thrown in, or an extended warranty that will be worth the extra few hundred pounds.

Credit Cost 

You might think that you are getting a good deal on the price, but how much will the car really cost you? If you are looking to take out credit, you will need to work out the cost of the credit, which will be listed at the bottom of the paperwork. The total cost you pay is what the car will owe you, and this means that you will end up losing money after taking into consideration the depreciation value for the next few years.

Road Tax and Insurance

Running a car is not cheap. There are two costs you cannot avoid, and need to be aware of: road tax and insurance. Even if your car is parked on the driveway most of the time, you will need to pay these bills every month. The more valuable and the faster your car is, the higher your insurance will be. Your road tax will depend on the engine type and the green features.


Close-up of the dashboard of a car, Delhi, India

When you shop around for a new car, the thing you should look out for is the mpg figures for motorways and city traffic. Some cars are designed for long distance driving and their engines are optimised for motorways, while others perform much better in peak traffic, when you have to stop and start all the time. Consider your lifestyle and driving habits before you choose your next wheels.

Maintenance and Servicing

If you are on a tight budget, and would like to avoid unpleasant surprises, you will need to find out the cost of maintenance and servicing. If there is a huge competition among dealers, and the parts are generally cheap, you are likely to get small things fixed at a low cost. At the same time, the more specialist your car is, the higher labour cost you will have to pay.

Before you buy your next car, you should work out the monthly and one-off cost of keeping it on the road.


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