How to budget for your new car | Tips | Vision Vauxhall

How to budget for your new car

Buying a new car is a big decision. In addition to the upfront cost of the vehicle, there are extra costs involved in keeping your car on the road.

Before you start, decide upon your budget – and stick to it. If you can afford to buy the car, you then need to check that you can also afford its running costs. The average amount that UK motorists spend on this is £3,500 per year, including fuel bills and Vehicle Excise Duty. The bottom line is: you will need enough money each month to actually drive the car.

Should you choose a petrol or diesel engine? Diesel is more cost-effective, but only if you drive at least 14,000 miles per year. Diesel cars also tend to be more expensive.

Working out VED is fairly simple and predictable because each vehicle has an official CO2 rating, but fuel economy can be a little trickier to calculate. Although car manufacturers provide miles-per-gallon figures, you need to take the car for a test drive and judge for yourself to be absolutely certain. Doing so, and arriving at a conservative estimate, will give you an idea of how much you can expect to pay in an average week or month.

Insurance is a key factor, and this depends on the value of the car and the age and driving history of all named drivers. There are other potential costs too, such as the London Congestion charge. A car with emissions under 100g/km of CO2 will be exempt from this.

Then there is the cost of parking, whether at home or at work. You also need to consider whether you are liable for toll road charges as part of your regular journeys.

Used cars are cheaper option, particularly as new cars tend to depreciate more rapidly. This matters less if you intend to keep your new car for a long time.

Servicing and repairs are another important cost factor. Regular servicing ensures that your vehicle keeps going longer and that its warranty remains valid. At Vision Vauxhall, we use only manufacturer-approved parts and accessories that ensure your warranty is not invalidated.

Discover our range of new and used Vauxhall vehicles by clicking through the links on our website. If you have any queries about financing, budgeting and more, contact us via our website or call us.