Costs to consider when purchasing a second hand vehicle

What things affect the costs of running a second-hand car?

With the current tough times, costs and our spending is at the forefront of our minds. So, it’s a good idea to look into all aspects of a used car to find the most cost-effective vehicle for your needs.

Road Tax

Road tax is compulsory to drive your vehicle on the roads in the UK; just like insurance, you must ensure your vehicle is taxed to keep it legal.

Tax is paid on an annual basis and is individual to each owner of the vehicle. It’s no longer tied to the car.

Car tax is higher for more polluting cars, like older diesel cars. You’ll pay less tax on newer petrol cars, hybrids and electric vehicles. These have lower tax rates to encourage car owners to choose greener vehicles.

The amount you pay depends on when the car was registered:

On or after 1 April 2020: taxed on the car's official CO2 emissions, with a higher rate if the vehicle doesn’t meet the Real Driving Emissions 2 (RDE2) standard.

On or after 1 April 2017: only the first-year rate is based on CO2 emissions.

Between 1 March 2001 and 1 April 2017: tax on the car's official CO2 emissions.

Before 1 March 2001: taxed on engine size.

More than 40 years ago: these historic vehicles are exempt.

Taxing a look into the Tax costs of the vehicle you are considering buying is essential, as some cars are considerably more to tax than others.

Maintenance - Serviceable Parts

Another thing to consider when looking for a second-hand car is the vehicle’s maintenance costs.

There are a lot of serviceable parts on vehicles, from the brakes to the engine oil and the tyres. Specific makes and models of cars have more expensive parts. For example, Audi and Mercedes’s parts are considerably more expensive than the likes of Ford and Fiat.

A general rule of thumb regarding car tyres is that the bigger the tyre, the bigger the bill. So, consider the vehicle you are buying and the size of the tyres, as there will come a time when they need changing, and you will need to pay for new ones.

Certain vehicles will have specific service requirements, where only certain parts and oils can be used, which will generally mean the cost is higher. So spend some time looking into the specific requirements of the vehicle you are considering buying.

Previous History is It due anything in the near future.

To save on unexpected costs, checking the vehicle’s service history before purchasing is essential. All cars have recommended service intervals and requirements set by the manufacturer. Reviewing these requirements and seeing if a major service is due; if so, has it been completed? If not, you will need to factor this into your costs when purchasing. Checking this beforehand will ensure you are not left with a surprise later down the line. 

Fuel/Diesel Petrol

Is a petrol car a better buy than a diesel model? Here are our thoughts and pros/cons for each.

Petrol – Pros

Petrol Costs are lower than diesel. We notice this now, with price differences of roughly 30p per litre.

Petrol is more efficient for short journeys. Doing the running around, school run and popping to the shop’s petrol is the better go for. New small petrol engines, which are turbocharged, are considerably more efficient and have good responsiveness.

Less Local Air Pollution

Petrol engines work differently from diesel engines, and one of the side effects is that they generally produce far lower particulate emissions.

Petrol – Cons

Petrol cars are generally less fuel efficient than diesel engines. You may pay less for petrol. However, you may find yourself at the petrol pump more often. This is particularly true on longer high-speed drives, where diesel engines are most efficient.

Diesel – Pros

Better for towing and longer journeys

Diesel engines produce more power at lower engine revs than a petrol engines. That’s what makes a diesel engine more efficient for longer motorway trips as they do not need to work as hard as petrol, which is helpful when towing.

Better fuel economy

Like for like, diesel cars give you a better mpg than petrol ones. The reason is that diesel fuel contains more energy than the same volume of petrol.  It’s not uncommon for diesel engines to have a combined MPG average of 70 MPG, whereas a petrol car is around 50 MPG.

Diesel Cons

Diesel’s are more costly to buy

Diesel cars cost more than their petrol equivalents, partly because modern diesel cars are fitted with complicated technology that reduces their particulate emissions.

Can cause poor air quality

The nitrogen oxide (NOx) gases that older diesel engines emit are linked to poor air quality,  breathing difficulties and other health problems in built-up areas.

Diesel’s doesn’t like short trips.

Most modern diesel cars have a feature in their exhaust called a diesel particulate filter (DPF) that reduces harmful particulate emissions. The engine must get to a specific temperature for the DPF to function efficiently, so if you tend to make a lot of short, low-speed journeys, the DPF can get blocked and cause-related engine problems that can be costly to fix.

ULEZ

Ulez Is set to expand to all London boroughs from 29th August 2023, so checking where you are likely to be driving and if this affects you is essential. If your vehicle is not ULEZ compliant, it will cost £12.50 per day to drive within the ULEZ zone.

You can quickly check if a vehicle is ULEZ compliant on the TFL Website  - https://tfl.gov.uk/modes/driving/check-your-vehicle/    

Take some time to think about the above when looking for your next used vehicle. They are all things which need to be considered.