Tuesday, 23 June 2015

Financing your car: how much does it really cost you?

The secret to successful financial planning is budgeting – and that means understanding the true cost.

With some things, that’s simple: you buy a designer handbag and the cost is the price tag.  But with other purchases, the cost is much more than the upfront payment.  This is more true of cars than most things.  As well as the showroom price, there are so many running costs, all of which can determine whether you can really afford the wheels you have set your heart on. 


Across the globe, cars are seen as a status symbol.  But before you rush out and buy a new car with your heart, take some time to think it through with your head.  To get a true idea of what your dream car will cost you to run each year, you need to add your petrol costs, servicing and maintenance, car tax, insurance and depreciation.  The final sum can be quite eye watering, even for a modest car.

The Money Advice Service has a great car costs calculator, which enables you to compare the running costs of different cars, whether you are looking at a new purchase or running an older model.

When you know the annual running costs of the model you like, it’s easy to work out how much money you will need each month to keep it on the road to see if it really is the car for you.  


For expert financialplanning advice, call Graham on 07740 192505 or email gkinns@coreifa.co.uk to book a no-obligation consultation at our expense 

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