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May 20

5 Costs to Consider When Buying Your First Car

Reading Time: 3 mins

When many of us were younger, we did not need to worry or panic about the cost of transport. This was because many of our guardians would chauffeur us from A to B without a second thought from us about the expenses of doing so. However, when we reach the milestone of passing our driving test and we venture out onto the road, it suddenly occurs to us how expensive being a motorist can be. This is a fact that resonates with the majority of the population as 89% of all American adults have a driver’s license. Therefore, it is important to consider the specific costs associated with your car before committing to driving it.  

Tires

Firstly, it is critical to note that being a motorist is expensive but not simply because of the price of the vehicle. There are also a whole host of other costs that you need to consider when you are purchasing your first car. Costs associated with tires are often overlooked however they do require you to put a lot of money towards them. Although tires usually last for a minimum of 20,000 miles for front tires and a minimum of 40,000 for rear tires, there is a possibility they will need to be updated or replaced. 

In this sense a payment plan is incredibly useful for those whose tires have suddenly given up on them. Of course, a car cannot operate without tires so whenever they are not working it is critical that they are repaired, or we acquire new ones. For those who cannot afford to pay straight away, payment plans allow them to still remain mobile on the road by paying in instalments. This may be essential for many people as they could need their car to get to work etc. 

Car Insurance

Another cost that you should consider is car insurance. The annual premium you pay will be based on a number of factors including your age, address and the model of car being insured, plus its insurance group. Remember to look around for the best deal but also to look at the specific policies of each insurance company to see if they work for you. You could also add a second named driver to your insurance which also may help lower the cost for you. 

MOT

Of course, there is always the cost of the MOT which is a test that checks whether your car meets minimum road safety and environmental standards. This is essential for cars over three years old to be able to be legally permitted on the road. Looking after your car and doing maintenance checks is one way of getting your car ready for this test but it could also necessitate spending extra money on doing so.  

Fuel

The most obvious cost that is associated with running a car is paying for fuel. Again, different places have alternating prices for their fuel, so you can shop around and see which one is the cheapest. 

Services and Repairs

Remember that regular servicing and repairs also costs money and often needs to be done once a year. However, for older cars or cars that have a lot of problems it may need the driver to take it to be serviced more than once a year. Remember also that it is always a good idea to get something that isn’t massively powerful and in one of the lower insurance groups. These will also most likely have lower road tax costs, with some having none at all. 

In summary, preparing for, purchasing and owning a car is incredibly expensive. This is because there are so many obvious and hidden costs associated with it that you are required to pay for. Whether it is tires, car insurance, maintenance checks, fuel or preparing for the MOT test, it is important to prepare for all of the costs that you will be asked to pay for. 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. 

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