How much will you need?

Fancy a new set of wheels? Here’s some food for thought to help you focus on exactly how much you’ll need to square away to afford your new motor.

New versus second hand

If you’re buying brand new, there’s always small print around the price quoted. So make sure you’re aware of what comes as standard and what you’ll need extra funds for. Those bits and pieces can add up to a considerable amount quite quickly.
If it’s a second hand car, you might want to have a mechanic check it out before you hand over your cash just to be sure everything is ok. So that could set you back about €100 or more. Do ask friends and family for recommendations on mechanics they’ve maybe used in the past. Also, an import will incur VRT.

Your absolute must haves

Engine size, number of doors, alloy wheels, colour and finish can all inflate costs. So be confident about what you will and won’t compromise on at the outset to keep your costs realistic.
You might find that being practical rather than flashy is more affordable, particularly when it will do the same job either way … get you from A to B.

The necessary extras

Car tax and insurance are unavoidable when you have a car. An average combined cost for both could come in at around €1,500 or more. You should also budget for petrol or diesel costs based on a forecast of your mileage for the year. And don’t forget your annual service and NCT.

Time to make a savings plan

With a view on approximate costs, you can start putting the ‘wheels’ in motion in terms of developing your savings plan. Commit to a time by which you’d like to have your new car and use our online calculator to work out how much you’ll need to save each month to get there.
If, for example, you opt to go the second hand car route and you’ve defined a cost of €2,500 over 8 months, that’s approximately €312 per month.

No place for tyre kickers

Savings momentum can be difficult to maintain when life gets in the way. Here are a few tips to keep the show on the road

  • Picture this: Stick a picture of your new car on your fridge or work computer as a reminder of what will soon be yours to keep your savings goal in sight.
  • Don’t overstretch yourself: Be prudent about what you can genuinely afford to save each month. Start by reviewing your monthly spending habits to see what you might be able to do without. Then put the savings made towards your new car.
  • Open a GoalSaver Account: Save regularly in a dedicated Goal Saver Account, deposit lump sums and access to your money at short notice, but not so often that’d you’d be tempted to dip in and out all the time.
  • Motivate yourself: Regularly check in on your savings goal target monthly. The 365 Online app is the perfect way to do this.

Savings hacks to make you go vroom

  • Share costs: If you can, be smart and share the cost of your new car with a sibling or friend. Going halves will help you reach your goal faster.
  • Tax upfront: When it comes to tax, you can save a few quid if you pay the annual amount up front. You’ll end up paying that little bit extra if you renew every 3 or 6 months.
  • Grab a loan: If you’re opting to buy a brand new car, the lump sum required can be difficult to save in a short period. Check out our competitive rates on a Bank of Ireland car loan for the bulk of the cash and continue to save for the additional costs in your Goal Saver Account. Find out more
  • Competitive insurance: Check out our competitive car insurance rates. Your one stop shop for all things motor. Find out more
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