running costs
If you don't want to waste a lot of your hard-earned cash running your first car then you need to make the right choices. To begin with, choose the right first car to keep your running costs down.
Unfortunately motoring costs are rising even faster than inflation. There's a couple of significant factors coming into play here — rising energy costs and increased taxation aimed at reducing Global Warming.
Global demand for oil — still high from the USA and the West and rapidly rising demand from China — have driven crude oil prices upwards dramatically. It has only recently dropped back below $100 a barrel but is likely to rise again in the future as oil we're using an awful lot of the stuff and we're not finding enough of it.
There is an increasing realisation of the effects that Mankind is having on Planet Earth and rather than leaving the general population to make the right choices, governments are ratcheting up the taxation on motoring as unfortunately motorists are seen as an easy target, as many people seem unwilling to give up their personal transport without suitable alternatives being available.
Use the ur1stcar Cost Calculator to find out how much it is likely to cost you.
The costs can be broken down into the following:-
Insurance
Usually for young and inexperienced drivers this is the highest annual cost. Find out how to minimise your spend on car insurance
Fuel
With both petrol and diesel now costing well over £1 a litre, buying a car with good fuel economy is a smart move. But consider how much more you might have to pay to get a more economical car. For example, the difference between a 35mpg car and a 40mpg is a little over £200 over 10,000miles.
You can find out where the cheapest fuel prices are near you at PetrolPrices.com
There are new fuel technologies that will reduce fuel consumption but they aren't cheap to buy.
Road Tax
For cars registered after March 1st 2001 this tax is now based on the amount of Carbon dioxide emitted by the car per kilometre and the Government is steadily increasing the cost for the higher emitting cars. For cars registered before this the tax is split into two bands. Find out more about Road Tax here but be prepared, it's not easy.
If you buy a car with high road tax it may affect your ability to sell it when the time comes.
Repairs and servicing
You'll want to find a reputable local garage and unless you need the 'main dealer' stamp on a new car, you'll find a non-franchised garage to be noticeably cheaper. Luckily there is the Good Garage Scheme to help you find a customer-recommended garage near you.
Depreciation
The difference between the cost to buy and the money you get back when you sell. Check out places like Parkers Guide to see what you're getting yourself into before you buy.
