Behind buying a home, purchasing an automobile is usually the second biggest investment that you make. When making this purchase, it is too easy to focus on the price-tag that the vehicle comes with and easy to forget the other financial factors that you must consider:
Depreciation
Depreciation is a huge factor to consider when buying a new car. Vehicles can depreciate in value as much as 35% after just one year and over 50% by three. If you are going to sell the car on, this means that you will be taking a huge financial hit. It is for this reason that you should seriously consider buying a used car – this is because you will have missed the major hit (plus it will be cheaper to buy). Places like AA Cars are a good place to start looking for used cars.
Breakdown Cover
Breakdown cover provides roadside recovery and roadside rescue at a minimum. Unfortunately, cars can break down at a moments notice and you will want to be protected against this.
Insurance
Every driver needs auto insurance and there are many reasons why. To begin with, insufficient auto insurance can result in the vehicle being taken away by the lender, as per repossession law. This can be a costly expense even for experienced drivers. Now, there are a few different levels of insurance coverage to consider, but be warned that the most basic cover could leave you seriously out of pocket in certain situations. For example, there can be situations like forgetting your keys in your car and you are unable to take that out. You may end up paying locksmith more than you expected. In such situations, insurance that covers locksmith can be at your aid. So, before you decide on insurance for your car, check out all their features and add-ons. As with most types of insurance, it is better to be safe than sorry. You can read more about this piece of information in AutoInsureSavings.org insurance article or in any other insurance agency sites.
Car Tax
The amount of tax that you pay is based on the amount of CO2 that the automobile produces. It is for this reason that it is certainly worth looking at alternative fuel cars or low emission vehicles as this could save you a huge sum in the long run.
Fuel
Running a car certainly is not cheap. Fuel prices are notoriously high, which is why you should look into an economic vehicle with high MPG. This is particularly true if you spend a lot of time behind the wheel.
Parking
You also need to be cautious about where you will park your new car. Always try to park your car in an enclosed space. If you have a garage, consider using it for parking. However, if your existing garage space is in need of a makeover, you can renew it by taking the help of local garage remodelers. You can also consider applying durable garage floor coatings that can protect your car tyres from potential damage and also create a clean and inviting environment for parking. When undertaking a garage floor makeover, it’s advisable to consult professionals at https://www.concretesciencefl.com/services or a similar makeover firm nearby that can recommend the most suitable coatings and ensure proper installation.
Service/Labour/Replacement Parts
It is unreasonable to expect your car to never encounter an issue on the road. You will need to factor in the cost of normal servicing, replacement parts and an annual MOT.
These are the main financial factors that you must consider when buying a vehicle. In some cases, you are able to reduce these costs by making certain decisions, but there are others that are simply unavoidable. Before splashing out on a new vehicle, it is vital that you do your research to find out what the exact costs are of getting behind the wheel and keeping it on the road are.
