Having your own vehicle provides independence and freedom like nothing else. Being able to get where you want, when you want without having to bug people for lifts or rely on public transport is the best feeling in the world. But buying and running a car is expensive, and you might have written off the idea of owning one due to the costs. But if you go about it the right way, it could be more affordable than you think. If you add up what you spend on buses, trains, and taxis each month, you’ll probably find that’s not very pocket-friendly either. Here are a few things to consider if you’re considering the costs of buying your own car.
Work Out Your Monthly Budget
Before you do anything else, you need to know exactly what you have coming in each month and what you have going out. Make sure everything is accounted for so you get a fully accurate picture of your finances. How much money realistically do you have to work with each month? Are there areas you could scale back? Don’t forget, if you get a car you won’t need money for other travel costs so those can be omitted. Once you know how much you have leftover each month, you can go about looking for a vehicle.
Finance The Vehicle
Most of us don’t have thousands of pounds sitting in the bank to purchase a car with. Even very old cars can cost hundreds, and then you run the risk of them being less reliable. Getting finance can be the idea option, you can spread the cost and are able to get a slightly newer or better car than you’d ever be able to just buy outright. The only issue with finance is you might struggle if your credit score isn’t the best. However, if you’ve been turned down, there are other options. Guarantor loans allow you to borrow money, providing a trusted friend or family member (who has a good credit score) will vouch for you. So instead of traditional car finance, you could borrow cash and use this to buy your car instead. Your best bet would be to save as much as you can while you’re in the process of looking for a car, using this as a deposit and borrowing the rest.
Find Cheap Car Insurance
Unfortunately, it’s not just the car you need to pay for, but insurance too which is why we recommend you compare prices. This is a huge cost to consider for younger or newer drivers. The insurance will depend massively on the vehicle, even those which are a similar age with the same sized engine can be the difference between hundreds of pounds a year. Before deciding on your vehicle, you will need to run lots of different quotes through price comparison sites. More expensive and newer cars will usually be less on insurance, so it’s a balancing act. You need to find the perfect vehicle where you can afford both the finance and insurance while getting the best car you can.
Once you finally have your car and are all insured, another major cost to consider is fuel. Driving economically such as not accelerating too hard and not resting your foot on the brake pedal will all contribute to lower fuel costs. Go easy on the AC which will burn through fuel like no-ones business, and don’t drive with the windows down for every journey. The wind resistance will mean the car has to work harder and use more gas.