Budget to buy a used car
How much do you need to buy and run a new or used car monthly? Find out how to calculate the cost of buying and keeping your car on the road
How do you work out a budget to buy a car?
Buying a car is an exciting time whatever your age, but first, you need to consider, Can I afford it!
Pick out the car you would like to buy and estimate the finance and running cost on a monthly basis, consider the following:
- Repayments on the finance -Monthly.
- Insurance – Monthly.
- Vehicle tax – Monthly.
- Your expected fuel usage – Monthly.
- Maintenance (include servicing and replacement tyres) – Monthly.
Now do the maths! Can you afford to own that car?
Yes! Great, just double check your figures and proceed to finance and buy the car.
No! Not surprising that’s the usual answer. Time for a rethink!
Dare we suggest looking at a similar model but with a smaller engine! The car should cost less and the running cost will certainly be lower!
Do you have a car to sell or part exchange?
If you already own a car are you going to sell or part exchange? You could sell the car privately, part exchange the car with a dealer or sell directly to someone like webuyanycar.com.
Do you need finance to buy your car?
If you are lucky, you may have the cash and can buy a car outright, but very few people do this.
Most people end up taking out some type of car finance and this may be the way to go for you.
See our Car finance section options for young drivers.