The Cost of Owning an Older Car

When people think about the cost of an older car, they usually focus on the purchase price. But the true cost of ownership goes much further. Before you buy an older car, it is important to understand what you will spend over a year of ownership.

Insurance

Contrary to what many people think, older cars are not always cheaper to insure. While the car itself may be worth less, insurance groups are based on repair costs, parts availability, and the car's safety features. A 15-year-old car could have expensive premiums if it is in a high insurance group. Always get an insurance quote before you buy. Classic car policies can be very cheap, but they have mileage limits and restrictions on how the car is used.

Vehicle Tax

Vehicle tax on older cars varies dramatically. Cars registered before 2001 are taxed based on engine size rather than CO2 emissions, which can be cheaper for smaller engines. Cars from 2001 to 2017 are taxed in bands based on CO2. Some older cars with high emissions can cost over £600 per year to tax. Check the tax band before you buy.

Fuel Costs

Older cars generally use more fuel than modern equivalents. A 20-year-old petrol car might average 35 miles per gallon compared to 50 mpg for a modern equivalent. Over 10,000 miles per year at current fuel prices, that difference adds up to hundreds of pounds. Diesel older cars are more fuel-efficient for motorway driving but may face ULEZ charges in cities.

Maintenance and Repairs

Older cars need more maintenance. Rubber components degrade, fluids need changing more often, and wear and tear items need replacing. An annual service might cost £200 to £400, and you should budget for unexpected repairs. A good rule is to set aside £50 to £100 per month for maintenance and repairs on an older car. Sometimes you will go months without spending anything, and then a £500 bill will arrive.

Parts Availability

For popular models, parts are cheap and widely available. You can buy brake discs, suspension arms, and engine parts for a Ford Focus or Vauxhall Corsa easily. For less common models, parts can be hard to find and expensive. This is where using a specialist like TRD Moters makes sense. We source used parts for older cars at reasonable prices, keeping your running costs down.

Depreciation

The good news is that older cars have already taken their biggest depreciation hit. A £1,500 car might only lose £200 to £300 in value over a year, compared to thousands lost on a new car. This is one area where older cars are significantly cheaper.

If you own an older car and need affordable parts to keep costs down, contact TRD Moters at Unit 15, Lilleshall Grange, Newport TF10 9HL or call 07721 551617.