There are a number of costs to consider when it comes to running a car. In this article, we have broken down some of the main expenses involved in owning and running a car, from the initial purchase to the general maintenance and upkeep of a car. We want to make it easier for you to manage and budget for these costs.
Consider the upfront cost of buying a car
The upfront cost of buying a car is one of the most expensive stages of owning a car. However, there are ways to manage this by budgeting what you can afford. The MABS online budgeting calculator is a great tool to help you work out your budget. Making a budget can help you to decide whether you will buy a new or second-hand car.
The advantage of buying a second-hand car is that it will oftentimes save you money as there are cheaper options available that are suitable for a range of budgets. However, if you decide to buy a new car, the bonus is that there are often finance options available that will allow you to spread the cost out over time.
Whether buying a new or a second-hand car, it is always recommended that you purchase your car from a reputable dealership or seller.
Getting your first car insurance policy
The next cost needed to run your car is the cost of your car insurance premium. This will depend on a number of different rating factors that are used to calculate insurance premiums. These factors include, but are not limited to, the age of the driver, driving experience, car model, age of the car, and the annual estimated mileage you will drive. So, in essence, the price of your insurance policy will depend on your personal details and these rating factors.
However, to help you save money on your car insurance, AXA offers a range of discounts on our car insurance policies, including up to a 75% no claims discount, a 10% discount for applying online and a 10% discount if you already insure your home or van with us.
Don’t forget your motor tax and NCT
These two are the next most important setup costs to consider. Motor tax needs to be paid every 3, 6 or 12 months, giving you the option to spread the cost if needs be. The rate of car tax for your car is based on the engine emissions specific to the model, for vehicles registered before 1st July 2008 the tax rate is based on the vehicle engine size.
The NCT is the National Car Test and it is conducted to ensure your vehicle is safe for the road. It is compulsory to take this test if your car is over 4 years old. It must be repeated every 2 years if your car is less than 10 years old, and every year if your car is over 10 years old. The test costs a flat rate of €55 per vehicle and you can book your NCT online when needed.
Are there any other ongoing costs to run a car?
Servicing your car is another cost that’s involved in running a car. It’s good practice to have a service carried out on your car on a yearly basis to ensure that it is road safe and running efficiently.
Other costs that are involved in the general maintenance of your car include minor costs like the cost of cleaning your car, changing the wiper blades, replacing bulbs and topping up fluids etc.
Of course you will also have to factor in the cost of buying petrol, diesel or electricity (depending on the type of car you drive).
