By Ela Matters Staff 
You’ll realise that fuel prices are always jumping up and down and insurance premiums are slowly creeping up every week. Once you add parking charges into the mix, maintenance and car tax, being a car owner can definitely add up!
It’s easy to focus on the purchase price of your car or finance payments and overlook the long list of ongoing expenses, but understanding where your money goes and staying ahead of it means that you will drive with more confidence and expect fewer surprises.
Car ownership costs
The true cost of owning a car stretches way beyond the price you see in the dealership – it’s as soon as you drive away that the real expenses begin. Regular servicing, MOTs, fuel, and tyre replacements come around more often than you think. Then there’s car insurance, which varies depending on your age, location, and driving history. Make a habit of shopping around a few weeks before it’s due – many drivers save hundreds simply by switching providers at the right time.
Your monthly budget
Treat your car like any other recurring commitment. Add up your regular costs and build them into your monthly budget. Don’t just focus on fuel and finance payments. Spread out annual expenses like tax and servicing across twelve months so you’re never caught off guard and have any nasty surprises waiting for you.
For example, if your insurance costs £600 annually, set aside £50 each month. That way, when costs roll around, you’re ready to go and can pay for it in one payment to save money on an annual basis. Budgeting like this gives you a clearer picture of what you can afford without needing to sacrifice elsewhere.
How to keep costs low
You don’t have to cut corners to cut costs. Drive smoothly to use less fuel. Did you know that accelerating hard and braking late can lower your mileage by up to 20%? Stick to recommended tyre pressures too, because under-inflated tyres make your engine work harder.
If your car’s due a service, don’t automatically head to the dealership you bought your car from. Independent garages often provide the same quality work at a better price. Just make sure they’re approved and follow the manufacturer’s schedule to keep your warranty intact.
And don’t ignore those warning lights! Small fixes caught early prevent expensive breakdowns later.
Saving for a rainy day
Unexpected costs are part of owning a car, and that’s just how the game goes. Whether it’s a cracked windscreen or a new clutch you need, the general wear and tear of a car can all add up. Set aside a small pocket of funds each month, even if it’s just £20. Over time, this fund will cover those surprises that can otherwise throw your finances off track. You might not need it for months, but when that bill lands, you’ll be glad you prepared. Think of it as peace of mind – not just money in the bank.