If you haven’t read the previous steps in this series then take a look back at Step 1 and Step 2 which provide advice on what car finance you should select. Step 3 will also help you determine what type of car is right for you.
Or if you’d like more information you can read our full Car Buying Guide here.
Step 4: Consider other car expenses!
Although it’s important to make sure your monthly finance payments are affordable, you should also ensure that you factor other car payments into your monthly budget. If you can only afford the monthly payments but have little left over after this to go towards car running and maintenance costs then it’s best to reconsider your choice of car.
Car running expenses
- Car insurance
Many of these costs will incur on a yearly rather than a monthly basis (other than fuel). But it’s important to ensure that you have enough left over after you have paid your monthly finance payment to use towards these other important car payments. To put this into perspective, The Money Advice Service estimate that the average motorist spends up to £3,500 a year just on car running costs.
Car maintenance costs
You should also be prepared for any unexpected car repairs and maintenance costs from unexpected circumstances. This means ensuring that you have enough to cover the cost to replace a tyre or a broken windscreen on top of running expenses and monthly finance payments.
Need some advice?
Our team of experienced advisors can help you find a car that meets your requirements as well as making sure your monthly income and expenditure allows room to cover all associated car costs.