Running a car can work out to be very expensive and this is after the initial purchase price. When working out if you can afford to run a car you need to take many things into consideration. There is the daily cost of fuel as well as yearly MOT’s, services and any repairs that may need doing. You may also want to take out breakdown cover and possibly even a warranty. If you buy a car that costs less than a thousand pounds, you can easily spend the same again in repairs in the first year just keeping the car on the road.

Motor insurance is often a huge expense for many people, even if you pay it monthly. Some new drivers can expect to pay in excess of £1500 a year for their insurance. Shopping around to get the best price really does save you money. When it comes to renewing your insurance, again shop around as you can knock hundreds off your renewal price by going with a different company. You may notice that by increasing the excess you would have to pay should you need to make a claim you can sometimes bring the premium down, but you should ensure that you can afford the excess if you need to claim.   

Driving economically will conserve fuel and mean you get more miles to the gallon. Many newer cars have an eco-gauge on them to show you when you are driving efficiently and when you are not.