The True Cost of Owning a Car: How to Manage and Save for Motoring Expenses

Owning a car offers freedom, but with it comes a range of expenses. Beyond the initial purchase, ongoing costs—such as road tax, MOT, insurance, and unexpected repairs—can add up, making car affordability a common concern.

At Boom Community Bank, we believe being financially prepared for both routine and surprise expenses is the key to long-term car affordability. Whether you're saving for regular maintenance or bracing for unexpected car repairs, we’re here to help.

The Essential Costs of Keeping a Car on the Road

Car ownership isn’t just about filling up the tank. Here are the most common car-related expenses you need to consider:

1. Road Tax

Paying road tax is mandatory in the UK. The amount depends on your car’s CO2 emissions and fuel type, making it an essential yearly or bi-annual cost to budget for.

2. MOT and Servicing

Your car must pass an MOT annually (if it's over three years old) to ensure it’s safe and roadworthy. Unexpected failures can lead to significant repair costs, while regular servicing can prevent bigger issues.

3. Car Insurance

Car insurance is essential and can vary in cost based on factors like your car type, driving history, and location. It’s important to shop around to find the most affordable option for you.

4. Fuel Costs

Fuel is one of the most variable expenses, depending on how much and how often you drive. Prices fluctuate, so budgeting for your monthly fuel expenses can be tricky.

5. Unexpected Repairs

Cars break down, and these repairs can cost hundreds of pounds. From replacing tyres to fixing engines, having a financial buffer can save you from stress.

Saving for the Expected—and the Unexpected

The best way to manage car-related expenses is to plan ahead. A dedicated car savings account with Boom Community Bank can help you cover routine costs and be prepared for those inevitable surprise repairs.

Boom’s Savings Accounts for Car Owners

By setting aside money each month in an easy-access savings account at Boom, you can ensure that when MOT season rolls around or your insurance needs renewing, you’re ready.

But what if you face a major, unexpected car expense?

When a Loan Could Help

Sometimes, savings might not be enough to cover large repairs or replacements. In those cases, Boom Community Bank offers affordable car loans, designed to help you stay on the road without financial stress.

Plan Ahead and Stay in Control

Planning your finances is the key to car affordability. Regular saving and affordable loan options can ensure you're always prepared. Explore Boom’s savings accounts or speak with us about car loans to see how we can help you manage the costs of car ownership.