Planning the costs for not only buying your car but also running it need to be taken into consideration when planning a budget. The following costs will be useful as a guide:
1) Cost of insurance
2) Tax and MOT
3) You should take your car in for an initial service and get it checked over regardless of where you buy it from, so “initial repairs” set at £500 as a guestimate.
4) Petrol each week for a short commute set at £50.
5) Service every 6 months
Don’t pay over the odds for your car, regardless of what the papers, magazines and websites say as the price, look up a price guide or use a text service. The car is only worth as much as someone wants to pay for it. Garages and sales people are definitely the wrong people to ask on how much a car is worth! As they are the ones selling it to you.
Once you have decided on your budget, make sure you can then budget for ongoing running costs. If you have to finance your car you have that commitment for 2 to 5 years, every month.