Car sales in the UK have risen dramatically, with reports of a 3000% increase in new car purchases since the previous year. But with a rising cost of living and greater job uncertainty than ever before in recent history, a car purchase is nonetheless a daunting thing – and how many of those new buyers did their research first? Here are three crucially important questions you should be asking yourself before pulling the trigger on a major expenditure of buying a new car, to give you the tools and confidence you need to say ‘yes’.
What Is Your Budget (Really)?
This question can be a bit of a trick question, especially for first-time buyers. The price you’re willing to pay for your new car isn’t the only consideration. There are extra costs incurred in the process, all of which are not only legally required but necessary.
The first major expenditure is VED or car tax. For the first year of your ownership, you are liable to pay a sliding rate depending on the emissions your car produces. After which you pay a flat fee year on year depending on your fuel type. Electric cars are exempt from car tax Despite the name, the tax is decided by the user, not by car. So if you were to buy a second-hand car that the previous owner had paid VED on, that payment would not transfer to the car.
Secondly, you will need to pay for yearly MOTs if your car is over three years old. These are generally around £55 at a time, but not an expense you can forget about. And if your car is a clunker, your MOT might find something you’ll be required to spend a lot more on before you’re allowed to drive it again.
Lastly, insurance. You legally need at least third-party insurance coverage to drive on the road. Any kind of coverage can be expensive – up to and over £2000 per year – if you are a new and inexperienced driver. Insurance can easily be the most expensive part of owning a car, even over-fuel costs!
What Are Your Needs (Really)?
You might be tempted to go for a slick new car with all sorts of extras and add-ons. Especially if you intend to finance the car and pay monthly. But take a second, and make a list of exactly what you need out of a new car. Is your family growing, and do you need the extra space? Or do you need space in the boot for travel? Do you travel a lot, and does the cockpit need to be especially comfortable? Or is this an a-to-b city car, and can you afford to cut back on luxuries? Keeping the other costs in mind – and that choosing your car wisely could lower them considerably – weigh up exactly what you need, as well as what you can afford.
What Time Do You Have to Look After Your Investment?
Cars do not run themselves. They require attention now and then, and regular attention can keep them happy for years longer than if neglected. So what time do you have to look after your car? Will you have time to book your MOT year after year, let alone regular servicing stops throughout the year? Something as simple as not washing and polishing your car regularly can affect the car’s second-hand value, losing you money in the long term.
