The average cost of running a car is more than £160 per month or £388, including finance. When it’s time for you to get a new car, the monthly costs that you will be responsible for are a significant concern. Your new car will come with a range of expenses attached, including finance payments, insurance, fuel, tax and MOT, and more. Many expenses are easy to break down on a monthly basis, while others can sometimes be a little trickier to budget for. Choosing the right car, and comparing prices for other expenses could cut your monthly costs, helping to make it more affordable.
Choose the Right Car
The car that you choose will obviously make a big difference to your monthly expenses. Firstly, there’s the finance payment unless you decide to buy a vehicle outright. This is likely to be your most significant cost, but make sure you have a budget to stick to. Think about what you really need from a car, including how big it needs to be. You might also want to save money by buying a used car instead of a new one. However, keep in mind that a used car might require more maintenance.
Look for Good Fuel Economy
Fuel isn’t a set monthly cost, but it’s likely you’ll be spending about the same each month. If you have a regular commute or other regular journeys that you make, you’ll probably use up about the same amount of fuel each month. By looking for a car with a good fuel economy, you can make some great savings. Think carefully about your fuel filter, and also whether to get a diesel or petrol car. Diesel cars can be more efficient, but that doesn’t necessarily mean that they are cheaper to run. A hybrid or electric car could also be a possibility for you to consider.
Find the Best Value Insurance
Insurance on a new car will be one of the most important costs to think about. You might transfer your existing insurance policy to your new car. However, before you do this, it’s worth finding out if you could be getting a better deal. Find and compare insurance deals so that you can discover the best options. Don’t forget to look at all of the important factors and not just how much you will be paying each month. You might also want to consider a separate breakdown cover.
Save on Maintenance and Cleaning
Across the year, you will have expenses for maintaining and cleaning your car. It’s a good idea to work out the costs by adding up what you spend in a year and dividing it by 12 to see how much you should be putting aside each month. You can make savings on these costs in a few ways. Firstly, you might find that cleaning your car yourself is cheaper than using a car wash or valet service. Secondly, preventative maintenance is usually a great way to save on repair costs.
When it’s time for a new car, decide on your budget first. You can then work out how much your car will cost each month and make some great new car savings.