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How much do I have to spend? Your budget is the starting point in your search for your car and this will dictate the type of car which you can buy.

How much is buying a car going to cost? If you are a first-time buyer the answer to this question is straightforward however it is more complicated if you are changing your car. You need to consider the “cost of changing”. The real “cost of changing” your car is the result of subtracting the value of your current car from the price asked by the seller/dealer for the car you want. Whilst a good price offered for your current car may sound like a good deal, it is the ‘cost of changing’ that is the important figure because that is the amount that will come out of your pocket.

How you are going to finance that amount? Will you pay by cash, finance deal, personal or car loan or even by credit card? Do you have a car to trade in? Before you even go to look at a car, you should have a good idea of how you intend to pay for it so that you can make a comparison with any finance deal a dealer may offer you.

You should always think about the running costs of whatever car you chose. You should consider the cost of road tax, insurance, fuel economy, MOT testing, servicing, repairs and spare parts. Remember to shop around for the best deal when considering insurance costs.

You should think about how long you intend to keep the car and what it might be worth when it comes to trade it in or sell it.  
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You should always think about the costs of operation of any vehicle you have chosen. You should consider the cost of road tax, insurance, fuel economy, ITV, maintenance, repairs and spare parts. Remember to shop around for the best deal when you consider the cost of insurance.  
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