Typical Car Running Costs
Buying your ideal car does not come without some ongoing costs which you need to bare in mind and budget for. It is essential to take into account these costs before you take the plunge and part with your hard earned cash as the last thing you want is to realise the running and ongoing costs are considerably more than you predicted.
Insurance
Insurance is the biggest cost you will encounter and needs to be arranged from the second you drive the car, if you are stopped or involved in an accident and do not have adequate insurance you will be liable for a large fine and may end up in court.
The type of car you decide to purchase will have a major influence on the level of insurance, for example a Ford Ka will be considerably less to insure than say a top of the range Audi. Each vehicle is given an insurance grouping, this gives you an idea of the level of insurance you may encounter. The grouping ranges from group 1 to group 20, the highest amount being group 20.
If you have purchased an older car it may be worth considering taking a Third Party policy, this will cover you if you have an accident and you are at fault, however it wont cover the cost to repair your car. The best policy is a fully comprehensive level of cover, which although is slightly more expensive will cover you for every eventuality.
Tax
Every car must display a valid Tax Disc. Car tax can historically only be purchased from a Post Office, however with modern technology you can now apply for your new Tax Disc online, this means it is delivered to your doorstep.
The level of tax will vary depending on the age and the amount of emissions your vehicle produces. Environmentally friendly electric vehicles can benefit from tax which is less than £35 per year, whilst larger four wheel drive vehicles can be in excess of £250 per annum, this amount is set to rise over the coming years.
If your vehicle is kept on a public highway it must display the disc even if you are not driving the vehicle. If your vehicle is found to be without a valid tax disc it can be removed and crushed, if this occurs you will have no come back and the car will be lost.
MOT
Once your vehicle turns three years old, you are required to obtain an MOT. The MOT is designed to ensure your vehicle is roadworthy and will not pose a danger to yourself or any other road user. It is basically a safety check to protect everyone who is on the road. The MOT lasts for 1 year and must have an MOT completed annually, the typical cost of an MOT is between £40 and £60 pound and can be completed at any certified MOT testing centre.
The MOT should be booked in for at least 2 weeks in advance of the old MOT expiring, this gives you ample opportunity to rectify and problems that may have been identified. If your vehicle fails its MOT, you will normally be given the opportunity of a free re-test meaning you don't have to pay for another MOT.
You need to make a note of your MOT expiry date as you will not be sent any reminders.
Servicing
Although not a legal requirement, it is advisable to ensure your vehicle is serviced regularly. You are able to see how often your vehicle requires a service by looking at the service booklet which will have been supplied with your vehicle. Many petrol cars have an interval of 12,000 miles or every annum, whichever comes first, whilst a diesel car can go for 2 years without requiring a service.
When you get your car serviced you can either choose to go to a main dealer or to get a smaller garage to complete the work. A main dealer service will nearly always be more expensive, however the work will be undertaken by trained mechanics who specialise on your make of vehicle.
If your car is under warranty you will need to ensure your car is fully serviced, in the past this had to be undertaken by the main dealer, however you can now instruct any garage to complete the work. If you do get an alternative garage to undertake the service you need to ensure they are VAT registered and you must stipulate you want genuine manufacturer parts to be used.
General
Your vehicle will suffer from general wear and tear over time. The three most common items of wear and tear are Tyres, Brakes and Exhaust system.
Your tyres should have a minimum of 1.6mm of tread to be legal. If they have less than this amount of tread they should be replaced immediately, you risk a fine and 3 points for every tyre which is illegal. Many tyres now have an indicator so you can see how close you are to the legal limit. It is advisable that once the tread is down to 2mm you should replace the tyres. When looking at tyres you are given three options, these will be to replace them with a remould, budget, or genuine make tyre. Prices will typically range from £20 to over £80. It is advisable to buy the best tyres you can afford, at the end of the day, the tyres are the only thing keeping you in contact the road.
If your brakes don't feel to be functioning as well as they normally do or you can head a grinding noise, it is worth popping into your local garage and ask them to check the brakes. Your brakes comprise of pads, disks and drums, quite often the brake pads wear down the quickest and are not too expensive to replace, brake discs are slightly more expensive at around £70 per brake disk replaced, including fitting.
Keeping your car in peak performance and ensuring it is legal and road worthy is essential, it will reduce the risk of an accident and reduce the risk of you breaking down. Also by complying with the law you are not leaving yourself open to possibly loosing your license and receiving a large fine.