Buying a car for the first time can be daunting, especially when wondering about the costs involved. We have broken down some of the principal expenses involved in running a car, from initial purchase to general maintenance and upkeep. We want to make these costs more visible and therefore, easier for you to manage and budget for.
Consider the upfront cost of buying the car
Perhaps the most expensive stage of car ownership is buying the actual car. It is worth noting, however, that there are ways to manage this. Whether deciding to buy a new car or a second-hand car, it all comes down to budgeting - figure out how much you can realistically afford and stick with that figure. If you need help working out your budget, the MABS online budgeting calculator is very helpful.
In either case, it is always recommended that you purchase your car from a reputable dealership or seller. If you buy a second-hand car, you undoubtedly save money as these cars are often cheaper and you can find cars to suit any budget. This gives a lot of flexibility to first-time buyers as well as money-savvy drivers in general. If you choose to buy a new car, the bonus is that you can spread the cost out over time and enjoy the perks of the manufacturer’s warranty in case any issues arise following the purchase.
Getting your first car insurance policy
In Ireland, you must have car insurance to legally drive a car. For first time drivers, AXA provides car insurance as well as insurance for young drivers, and we offer a range of cover levels from comprehensive to third-party fire and theft to third-party only. We reward any named driver experience you might have with a relevant discount, and you can save even more if you get a quote from AXA online.
When calculating your car insurance, there are several factors to consider, including, but not limited to, the age of the driver, driving experience, car model, age of the car, and the annual estimated mileage you will drive.
Don’t forget your motor tax and NCT
These two are the next most important setup costs to consider. Motor tax needs to be paid every 3, 6 or 12 months, giving you the option to spread the cost if needs be. The rate of car tax for your car is based on the engine emissions specific to the model, for vehicles registered before 1st July 2008 the tax rate is based on the vehicle engine size.
The NCT is the National Car Test and it is conducted to ensure your vehicle is safe for the road and to enhance environmental protection. It is compulsory to take this test if your car is over 4 years old and must be repeated every 2 years if your car is less than 10 years old, and every year if your car is over 10 years old. The test costs a flat rate of €55 per vehicle and you can book your NCT online when needed.
Are there any other ongoing costs to run a car?
Other costs that are involved are in the general maintenance of your car like cleaning, changing wiper blades, replacing bulbs and topping up fluids etc, and these are, for the most part, minor costs. Of course, you will need to buy petrol, diesel or use electricity, depending on the type of car you drive, and it’s good to always keep a few essentials in your boot, such as a bottle of engine oil, windscreen washer fluid, de-icer, an ice scraper, a first aid kit and a warning triangle in the event of a breakdown.
It’s also good practice to carry out yearly servicing on your car, with some models requiring a winter service, which may include the addition of winter tyres for your driving safety in colder conditions.
If you are considering AXA for your car insurance coverage, why not read our car insurance policy benefits to see what’s included in our policies. Also, if you apply online through our website you can enjoy a 10% discount - helping you save even more on setting up your first car (subject to minimum premium).
