So, what exactly makes up the full cost of buying, owning and running a car, and how do you budget for one? This post breaks down the onslaught of financial information to help you make informed budgeting decisions.
Initial Costs
Learning
Before you’ve even got your license, the cost of learning to drive will have already mounted up; applying for your provisional, paying for theory books and learning materials, lessons, theory test, and practical test.
Breakdown Cover
The first year of driving is often when accidents occur. Poor maintenance can also be a cause of breakdown, so to make sure you’re covered for towing and roadside fixes if you break down or have an accident, getting breakdown cover is essential. Local towing services can provide immediate assistance in case your vehicle breaks down while you’re on the road.
Recurring Costs
Maintenance, Servicing & MOT
It’s important to get your car serviced at regular intervals in line with manufacturer specifications, even you’re not planning to sell your car on. An MOT test is an annual requirement for cars over 3 years. You’ll need to do a certain degree of maintenance to your car yourself to keep costs down. The following are common things that need replacing:
- Tyres
- Coolant
- Windscreen Wiper fluid
- Lightbulbs
- Timing (Cam) Belt
- Brake Pads
Car Insurance
If you’re caught speeding, using a phone while at the wheel or any other offence, your insurance premium will be raised, and in some cases, you may struggle to even find an insurer to cover you.
Fuel
While the price of fuel fluctuates, it still is one of the greatest cumulative costs you’ll incur over the lifespan of your car. While there are fully electric and hybrid alternatives on the market, we are still reliant on petrol and diesel for the majority of our vehicles. There are ways to make your driving more economical though.
Road Tax
Tax is calculated by the car’s engine size or official statistics for the emissions of CO2, as well as the date of registration, and it’s organised in Vehicle Excise Duty (VED) payment bands from A to M – the lower the emissions, the lower the tax.
Additional Costs
Congestion Charging
The Congestion Charge is implemented for most drivers in Central London at £11.50 per day between 7am and 6pm from Monday to Friday.
Parking
Naturally, if you wish to park in a paying car park – according to research there are over 4700 parking facilities in the UK – you’ll have to pay the fare. Unless you’re registered disabled and you own a Blue Badge. If you park in unauthorised spaces, you may incur fines and clamping charges and may get towed by an auto wrecker.
Fines
Careless driving can cost you not only money, but sometimes carry a custodial sentence. Expect to pay between £30 and £5000 for offences ranging from not having and NOT certificate, to driving under the influence.
Toll Roads
In the UK, you’ll have to pay a toll if you intend to travel on any of the following roads:
- M6 Toll Road in the West Midlands
- M25 Dartford Crossing
- M4 Second Severn Crossing
- M48 Severn Bridge
Driving is an expensive business. Making sure you stick to the rules and get clued up about running costs and potential extras before you make the financial commitment is imperative.
