Some further thoughts on car ownership...

A prime question with respect to cars is whether to buy or lease your car and whether to buy brand new or second hand. Here it depends on circumstance. What is the purpose of your vehicle and how much love do you actually have for cars?

I think someone who drives every week day to work and has a company sponsored car allowance of some sort will be in a very different position from someone who uses a car on the weekend only for occasional shopping and out of town driving. The former may well want to buy a brand new quality car as they are doing high mileage and have the allowance to augment the cost. The other who may already be spending thousands anyway per month commuting on public transportation (especially in London) into work should be looking at a cheaper car.

Remember the golden rule is that if you drive the car off the forecourt, the value of that brand new car has already plummeted by 20% or so. So if you do want a brand new car, you must really desire that car and have a functional need for it (whether it be safety or utility).

Cars these days come in so many shapes and sizes and many of the manufacturers have now diversified into the SUV market, people carriers etc. Many of the car companies have been bought and teamed up. Old marques that had horrendous reputations (like Skoda) have improved beyond compare and often use the same parts of the mother group (Audi, VW). Often they use the same chassis. So there is much wider choice of both manufacturer and type of car you want and this is where the utility of the car is important. Are you planning to spend most time driving around the city or long trips though the country. Do you need 7 seats? How do you view fuel efficiency and would you prefer electric, hybrid, diesel, LPG or petrol.

Another thing people often overlook is the cost of a car is not just the purchase cost. Cars cost a lot to run every year and you will need to consider MOT certification (cars>3 years), annual service, fuel, emergency services, insurance, AA or breakdown fees, licence fees, penalties (parking and driving) and accessories (washing fluid, mats, ice scraper). All these make a car an ongoing cost sucking at least GBP150-200 per month in costs, even when sitting idle on your driveway. These are seldom ‘assets’.

Maintaining your car
Just remember that cars are at the end of the day high speed metal objects hurtling at high speeds along hard concrete surfaces whilst trying to avoid similar metal hunks travelling hopefully in the same direction. You are at the mercy of (a) your own wits and (b) your cars technology and materials and maintenance. Thus maintaining your car is important and could just save your life.

The good thing in the UK is that cars that are over 3 years old are obliged to have an MOT and certificate issued (a motorcar roadworthiness certificate). Any issues that are picked up need to be fixed before the MOT is issued. The MOT however is not a catch all and regular servicing of one’s car is key. Preferable with the same mechanic. Over the long term I have found it is cheaper to find a good mechanic and consistently use them rather than continually shop around and change mechanics. A good mechanic will get to know your car and you can barter if you are tight for cash at the time of your service for what pieces of work need to be done. During these discussions I would say anything that compromises the safety of your car must be dealt with first (wheels and tyres, brakes, exterior lights and engine) and thereafter you can consider the chipped door or the broken cigarette lighter inside.