For a great many households in the UK, having access to a car is nothing short of essential. Whether it’s for a long motorway-borne commute, regular visits to distant family or simply the school run, having a car is unfortunately a non-negotiable necessity for most – despite the incredible costs associated with them.
Indeed, cars are often one of the biggest financial commitments a household can make, not just for the list value of the vehicle itself but for a cavalcade of additional reasons – reasons we’ll be exploring shortly, in aid of answering the million-pound question: how can someone choose a car that fits in their life, without bursting the budget in the process?
The Real Cost Of Owning A Car
Let’s start, then, with the crux of the matter: money. And, broadly speaking, how much of it. There is, of course, the purchase price of the car itself – which could be as little as a few hundred pounds for a well-loved banger, or as much as several hundred pounds per month as part of a multi-year lease-to-buy.
Despite the fact you may be able to sell your car on in the future, a lot of this investment is irretrievable; cars are depreciating assets, that lose value significantly over time. But this is only the beginning. Owning a car also incurs a variety of ongoing costs related to regular travel, maintenance and the law.
If you’re an EV buyer, you might need to buy Type 2 to Type 2 cable if your car doesn’t come with one, or the length of the one given to you is insufficient (we recommend 7m).
Fuel costs money, whether it’s petrol, diesel or a few hours plugged into an EV charging port, with electricity prices and the energy you add to the battery pack determining costs.
Cars need regular services, to keep on top of predictable wear-and-tear like tyres (which, themselves, cost money) and catch problems before they lead to accidents or breakdowns. Legally, MOTs are required each year to ensure a car is roadworthy; similarly, you’re legally required to take out car insurance to protect yourself and others in the event of an accident.
Pro tip: Use our EV charging cost calculator to see how much driving home, to work, on holiday, etc will cost you.
Matching Monthly Payments To Real-World Budgets
All of this adds up to a significant amount of money going towards keeping your car on the road each month, outside of the potential for emergency repairs or roadside assistance. So how do you match this with a tight budget? Simply put: with a little forethought.
The more you can forecast these costs, the better you will be at shaving them down. Using a car finance calculator can help you figure out your monthly budget for paying off a vehicle, meaning less upfront cash disappears into your car.
Using this budget, you can look at the right cars for your needs – and get insurance quotes for them in the same breath, allowing you to get the safest bet for your money.
Making Car Ownership Work Alongside Other Financial Goals
The reason buying a car is such a major financial decision isn’t just the wealth of money it can require; it’s the fact that you have other priorities to consider too.
It’s not about having enough money to afford the car, but rather having enough money left over to meet personal long-term financial goals, and have some set aside for emergencies too. This is why budgeting – and spreadsheeting – are key to making car ownership work.
