What are all the costs associated with getting a car?

Beyou

Hi I want to get a car on finance. I am trying to work out all the costs associated with this. So far I have: Monthly finance payments (PCP), Insurance, Fuel cost, Maintenance Service, Road Tax. 
Is there anything else please? Also, what are the general things to look out for when getting a car? Unfortunately, I do not have anyone to ask for guidance or support so I really need to make sure I can afford this and do not want to make any mistakes.
Thanks in advance.

Alter_ego

Breakdown cover, parking charges.

daveyjp

If you are considering a PCP, but admit you don't know what you are doing you are a perfect target to be fleeced.  You need to understand all the following and how they affect the 'price'.

Price
Term
Deposit
GFV
Monthly payments
APR

Otherwise you can end up buying a £5k car for £9k which actually costs you £15k to rent for 5 years and is then worth £1,500.

You also need to understand GAP insurance, tyre insurance, minor damage insurance, 'magic' polish and fabric treatments which will all be pushed if you go to a main dealer.

ontheroad1970

daveyjp said:

If you are considering a PCP, but admit you don't know what you are doing you are a perfect target to be fleeced.  You need to understand all the following and how they affect the 'price'.

Price
Term
Deposit
GFV
Monthly payments
APR

Otherwise you can end up buying a £5k car for £9k which actually costs you £15k to rent for 5 years and is then worth £1,500.

You also need to understand GAP insurance, tyre insurance, minor damage insurance, 'magic' polish and fabric treatments which will all be pushed if you go to a main dealer.

The PCP means that at the end of the 3/4 year term you have to hand the car back or pay a larger amount.  Also used PCPs tend to be higher APR and you pay that interest on the whole amount including the bubble which is not paid down until the end.  So one rule, with very few exceptions: DON'T DO PCP ON USED.  

macman

Don't ignore depreciation (especially so if buying new), and loss of interest on capital.

cymruchris

General things to look out for when buying a car? Depreciation - what'll it be worth in 3 years time? Some cars drop their value like a stone, others have an initial drop and then level off to a much slower decline. Whatever happens, the car is going to be worth less, but choosing one of the 'less depreciating' models will help your chosen overall package choice. 

fred246

macman said:

Don't ignore depreciation (especially so if buying new), and loss of interest on capital.

I don't think 'loss of interest on capital' is very much these days.

Ectophile

If you're buying a new car on finance, then GAP insurance is something to seriously consider.  But you don't have to buy it from the finance company that's selling you the car.

Goudy

I would add to you list you own personal circumstances.
These days that's hard to work out for some, but is your income secure enough to sign up for credit?

Also you mention PCP, is this likely to work out the cheapest way to buy a car or is it just the cheapest monthly payments?
There are instances when they are the both, particularly on some new cars but it's very rare on a used car as interest rates are much higher and there is often no deposit contribution from a manufacturer or financer.

Some of the costs you mention are pretty variable depending on what you buy and between new and used.
Maintaining a used Audi out of warranty is going to be far more expensive than a new Dacia with a warranty and perhaps a service plan, so if you posted a bit more information on what you have to work with, I'm sure you'll get some more advice.

clive0510

and the unforeseen things like hitting a pothole as I did a few weeks ago. checked it over at the time didn't see any damage. was in the garden yesterday and thought n/s/f tyre looks a bit flat. when Iooked closely found a spilt in the tyre. took it to tyre center and when they took the wheel off, found the inner side of it had a dent in it. which fortunately can be straightened. so with new tyre and straighten the rim,its going to be about £150,00. 

Mutton_Geoff

fred246 said:

macman said:

Don't ignore depreciation (especially so if buying new), and loss of interest on capital.

I don't think 'loss of interest on capital' is very much these days.

Depends what you spend your capital on. My purchase of SMT.L (Scottish Mortgage Investment Trust) has grown 100% in the last 12 months. It's rare a car doubles in value in a year.

https://uk.finance.yahoo.com/quote/SMT.L/