NEW HABIT: Budget for £500 for annual car costs
6 years ago I bought the cheapest, new car I could buy, a Skoda Citigo. I stupidly thought a new car would mean 10 years of hardly any costs because it wouldn’t start having problems until then. Well, I was very wrong. Just a few months out of warranty and I had to part with over £500 for the ABS system that was faulty. Then this year, the windscreen drain holes became blocked and caused lots of water ingress to the car. It took them ages to find the cause and £300 later I am with a fixed but a very damp car. Now I get condensation inside and I see some mould on the carpet.
Every year, I have to insure the car. I can save money if I pay it in one go instead of by direct debit. But of course, being a procrastinator, every year I have no money saved for insurance or garage costs. My service is on a monthly payment plan which means I never have to worry about it.
So this new habit is a commitment to save enough money to cover my insurance, MOT and possible garage costs in November 2019. I think I will aim for £500 because I recently managed to reduce my insurance from over £500 to less than £200. My road tax is just £20 and the rest should cover most surprise costs.
Next year I am thinking of taking manual lessons and a test because I only passed in an automatic car. Then I would like to get a new car on a finance plan. A bit like my iPhone, I would like to borrow money to finance a better car and upgrade it every few years so to avoid the situation where cars break down and unsaved money is required to fund it.
“I’ll will budget to save £500 towards car costs every year”