Beyond The Price Tag: Working Out The True Cost Of Your Car Purchase

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Buying a car is a huge decision, not least on a financial front, which is why every driver should be committed to getting it right. While finding a suitable vehicle that won’t break the bank is one thing, the choice of model is only one factor for making a smart decision.

If you can haggle on the price, that’s great. However, there are many contributing factors to the overall cost of car ownership, and you must take them all into account. Here are five of the most crucial elements.

Repayment charges. Most people aren’t in a position to pay for their car outright. Therefore, the price you see isn’t always the price you’ll pay overall. Learn to understand repayment at auto.loan, and you’ll be in a far stronger position to make your choice. If you’re upgrading from an older car, you must also factor in the part-ex price. After all, that asset could go a long way to reducing the financial strain.

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Running costs. Boasting a beast with a big engine might provide an initial sense of excitement, but it could also result in greater gas consumption. On a similar note, overly big and weighty vehicle will cost more to run than smaller ones. Given that there are now dozens of brilliant superminis and other modest sized vehicles on the market, you’d be a fool to go unnecessarily large. Keep it as small as your lifestyle allows, and the long-term costs will fall.

Replacement parts. All cars need a little TLC from time to time. Opting for a standard manufacturer like Ford will ensure that new parts and repair jobs are far cheaper. When opting for an old car, you also need to think about the tech upgrades that may make driving safer. With this in mind, opting for a car that’s 20 years old could be counterproductive. As long as you consider the long-term needs as well as the immediate budget limitations, you should be just fine.

Insurance cost. After the purchase itself, the biggest cost is likely to revolve around insurance.  Regardless of the vehicle, you should always search for the best coverage and package. This is easier than ever thanks to online price comparison websites like thezebra.com. Conversely, overlooking the need to consider insurance could see you taking on a far greater expense than you imagined. Tax and other additional costs should be factored in too, but insurance is king.

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Resale price. For most drivers, it’ll only be a few years before a newer car is wanted. Depreciation rates can be rapid, which is why you should look for cars that hold value. Of course, this won’t be the top item on your agenda, but it is something worth considering. After all, making a smart decision now will put you in a stronger position when it comes to upgrading. The knock-on effect could have a telling impact for the rest of your life.

So, as you can see, the cost of car isn’t all about the price displayed in the showroom. Cover all the bases, and you’ll become a far happier owner.

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