What To Spend On A Car?

I’m a man of simple pleasures. I like the idea of driving around in a flash sports car just as much as the next guy, but the difference between fantasy and reality – usually based on how much money I have – is often a little too much to bear. Shelling out ridiculous amounts might get you noticed, but what about finding something worth driving for less? How much should you be spending if you want one of those so-called ‘supercars’? Having done a bit of research, here are some things to consider.

The Budget End

Go for a brand new budget car, say for less than £10,000, and that could mean settling for a small city runabout – low in power, and not all that manly. But what about a Fiat 500? This has been a huge success story for the Italian manufacturer, with a wide range of engine and trim choices, all channelling that fun, retro feel.

At this price, you could also buy a Mercedes – well, a Smart ForTwo two-seater made by the brand, that is. Its quirky shape and compact design will turn heads and it also means you can park in the tiniest of spaces – you’ll be settling down with a cup of coffee while your mates are still looking for a spot.

This price point can also help eager 16-year-olds get on the road with four wheels. Anyone heard of the Aixam Coupé S? It’s a microcar from France which, in the UK, has the same licence requirements as a moped or scooter, all for £9,999. This means that drivers can take to the roads a full year before passing the usual driving test. The downside, though, is a top speed of 28 mph.

Good All-Rounders

Being able to pay a little more can give you greater choice and bring you into the territory of brands such as Volkswagen, Ford and BMW. These are often among the top 10 most popular with insurance services, and it’s usually for good reason. Each of these manufacturers generally has a reputation for being reliable, well built and good value.

For example, a new version of that old favourite, the VW Golf, came out recently; it’s now up to MkVII, and a GTi model will set you back around £25,000. If you can stretch a little more here, you could purchase the optional Performance Pack for a few extra driving thrills.

A Ford Focus ST or Vauxhall Astra VXR can offer a sporty performance for similar money, or will maybe get you some off-roading thrills. The latest BMW X3 has received all kinds of praise, looks good, and can be yours for £33,000.

Dream Cars

It’s when I start to think of names like Lamborghini or Ferrari that I know my imagination is getting too far ahead of my wallet. These supercars tend to go for around £250,000, but a Jaguar XK is a relative ‘snip’ at £65,000.

That sort of money gets you into Maserati territory too, if you can wait for the new Ghibli to come out. The price tag is expected to come in at £60,000 or so, but it’s definitely cheaper than a GranTurismo at £80,000. I like the idea of buying British, although it effectively doubles the outlay to go for an Aston Martin or a Bentley. But then again, these were the preferred car makers of James Bond!

Insurance Costs

Regardless of how much you spend on a car, the overall is going to be affected by road tax, fuel and maintenance costs, and of course, insurance. The age of the driver, engine size, average miles and so on will all come into play here. Drivers in the UK must have at least third party only insurance, which means any other car or property involved in an accident is covered, but not that of the person at fault. The excess will also affect the insurance quote, which is the amount you have to pay yourself should an accident occur – lower premiums mean higher excess, and vice-versa.

Paying For It

There are a number of ways to finance your chosen car, and if your credit history is good, one option is with a personal loan. These can be arranged easily, will cover the full cost or part of the vehicle, with the APR (annual percentage rate) something to compare from one offer to another. Have a look at the Tesco Compare car insurance website to get a feeling for the options out there. A hire purchase (HP) can also be arranged through a car dealer, where a deposit may be required, and the remaining cost of the car paid through instalments. Make sure you look out for charges, such as for early repayment, when making your choice.

In collaboration with Tesco Compare.

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