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The Real Cost of Buying a Car

The Real Cost of Buying a Car

20 Mar 2015

Posted in:  Buying a Car and Loans

Whether you’re getting your first set of wheels or upgrading the family bus, buying a new car always has a few costs associated with it. Being ‘in the know’ about the upfront and ongoing costs can help you budget correctly and learn what to look for in a car. For helpful tips when choosing your new car, check out our post on Top Tips for Car Buyers. If you already have your eye on a particular make and model, have a look at AIB Car Finance’s guide below to upfront, annual and ongoing costs associated with owning a car.

Upfront costs

Price of purchase
The price of purchase is the most obvious large cost you’ll to pay up for your car. Decide what car type your lifestyle requires and what your budget will allow. Bear in mind that while a new car is more expensive, the cost to insure it may be cheaper. While a pre-owned car may be cheaper, the maintenance level will be higher. Automatic cars are also more expensive than manual cars.

Inspection of vehicle
Even if you’re a bit of a ‘petrol head’ and know a thing or two about cars, always have the car inspected by a professional before buying it. They will know what to look for exactly and ensure you’re not buying a proverbial ‘lemon’.

Annual costs

Roadside and breakdown assistance
Roadside and breakdown assistance should be taken out when you first buy your vehicle. After this, you will be required to renew your membership on an annual basis for a fee. This will cover you in the event you have a breakdown on the side of the road and can also include extras such as windscreen repair etc.

NCT
Cars under ten years old are tested every two years and cars older than ten are tested every year. While the cost is relatively small, it’s important to factor in any necessary expenses required to pass the NCT. These could include replacement bulbs or new seatbelts.

Road tax
Road tax is a large cost that you need to budget for every year. When you purchase your new car initially you need to budget for registration transfer.

Insurance
Car insurance is something that’s better to have and not need rather than need and not have. By law, as the owner of a vehicle it is compulsory for you to have third party insurance. However, it is recommended that you also take out insurance to cover fire, theft and accidents. For Car Insurance that’s tailored to your needs, make sure to visit AIB Car Insurance.

Ongoing costs

Along with your setup and annual car costs, there are other everyday costs which you will also need to budget for. These include petrol, tolls, new tyres, repayments for loans and the cost for servicing and maintenance.

To see a range of options to help you finance your new car, visit AIB Car Finance today and get quick car loan approval in just 3 hours.

Allied Irish Banks, p.l.c. is an agent of AIB Insurance Services Limited in relation to provision of general insurance products. AIB Car Insurance is exclusively underwritten

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