What other costs should I be aware of with car finance?
Buying a car is often the second largest purchase you make in your life, behind a mortgage, with millions of people choosing car finance to help them fund that purchase.
We appreciate that paying back the finance, isn’t the only cost to consider when purchasing a car. Similar to a mortgage which has extra costs to consider such as council tax, water, gas and electricity, repayments for your car finance aren’t the only cost you need to think about. You are responsible for ensuring your vehicle has road tax, appropriate insurance and has a valid MOT certificate. You should also consider the running costs of the vehicle itself and factor in the expected cost of servicing and maintenance, such as replacement tyres and brakes and don’t forget how often you will need to fill up on fuel.
Car manufacturers are constantly improving the efficiencies of their vehicles which can sometimes result in your road tax and insurance being lower than the norm – this is all dependent on everyone’s individual circumstances but is definitely something to consider when looking for your new car. Our team of car buying experts can help you find those vehicles which have lower road tax.
The guide below should give you an idea of monthly costs to run a car. This example doesn’t include the finance repayments and these would be in addition to the below. You can use Zuto’s car finance calculator to see how much you can borrow.
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Make sure you factor in all of the running costs of a car when considering car finance. This will help you understand how much you can borrow for your perfect car.
Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.