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Hi All,
Can anyone advice on Car Expense per month required in UK ?.

I will be in UK on Tier2 ICT Visa for period of 2 years.

Do I need to buy a car or rent a car for a period of 2 years ?

If I rent a car then what would be car expense (Break up) per month like Car rental, car tax, car insurance, fuel expense per month etc.

I will live in a small town called Newton-le-Willows (Merseyside). My office is located at 13 miles away, so I will be travelling 26 miles every day.

I am 39 year old.

I will be using car to travel to office and to groceries store, etc.

Can you please let me know the Car expense in detail.

Pl. Help
 

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There are car leasing schemes where you lease a car over a lengthy period of time provided you don't exceed the agreed mileage (most deals have a tight 8-10k limit per year which might be tight on the miles you're doing - and charges for exceeding per mile are hefty). The price varies hugely depending on the make and model of car you wish to hire and the period of rental (many state 48 months so you need to take care on choosing the right deal), and all of them usually require an up front deposit of anything up to £2000 (again, this depends very much on the make and model of car you choose). For example prices, try this site: personal contract hire | personal lease | personal car leasing (ensure to click "personal" at the top as most of the deals displayed immediately are aimed at business users.

Tax depends on the engine size of the car. My car being a 2.0L engine falls into the higher £280 tax bracket (per year) but lesser engine sizes can be much lower.

Insurance for a regular, safe driver here with a British licence is going to be in and around £35 a month (I'm a middle-aged woman, British, with no prior claims or convictions, so my insurance is at the lower end of quotes - so you might want to allow for a bit more).

Fuel is bitterly expensive here. To fill a tank costs me in the region of £60. On your journey, I would imagine you'll need to fill up once each week.

So, those figures per month will look like:

Hire: £100 - £500 (depending on car chosen - initial deposit also required)
Tax: £10 - £30 per month (depending on engine size)
Insurance: £35 per month (low estimate - may be higher)
Petrol: £300 per month
Recovery: (optional roadside recovery insurance - approx £12 per month)

If you buy a car, you will be paying a fair bit more per month for its purchase unless you can put down a large deposit or buy outright, and you'll have servicing fees to factor in too (around £400 per year). The option of buying an older used car would save on a lot of money though.
 

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Trouble with leasing is unless you have good UK credit record, you won't pass credit checks and they won't offer it to you.

Generally speaking, for a small car, buying new, reckon around 50p per mile for all costs (fuel, tax, service, depreciation, loss of interest). It will be less if you buy secondhand.
 

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Trouble with leasing is unless you have good UK credit record, you won't pass credit checks and they won't offer it to you.

Generally speaking, for a small car, buying new, reckon around 50p per mile for all costs (fuel, tax, service, depreciation, loss of interest). It will be less if you buy secondhand.
Sorry not trying to divert the topic here but couple of questions regarding car expenses and insurance:

Any suggestions Joppa on reliability issues when buying a secondhand car. I mean is there a means to test that the 2nd hand car is not going to breakdown within couple of months after buying it. My assumption is that there must be some vendors that offer guarantee for certain time before the car would need any kind of repairs etc.

Also, although I haven't been living in the UK since leaving in 2003 but I do now recall that I have been here in between and till 2009 by father kept me as the secondary driver in his car insurance and moreover, the last time I was temporarily on a car insurance, for a month, on my friend's car when I was here in 2010 for a short period of time. Would this contribute in determining the car insurance or not?
 

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Sorry not trying to divert the topic here but couple of questions regarding car expenses and insurance:

Any suggestions Joppa on reliability issues when buying a secondhand car. I mean is there a means to test that the 2nd hand car is not going to breakdown within couple of months after buying it. My assumption is that there must be some vendors that offer guarantee for certain time before the car would need any kind of repairs etc.

Also, although I haven't been living in the UK since leaving in 2003 but I do now recall that I have been here in between and till 2009 by father kept me as the secondary driver in his car insurance and moreover, the last time I was temporarily on a car insurance, for a month, on my friend's car when I was here in 2010 for a short period of time. Would this contribute in determining the car insurance or not?
The only way to get a guarantee is to buy off a dealer. 2nd hand cars from private are bought as seen. You being named driver for a short period of time won't have any influence on a new insurance deal I'm afraid.
 

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The only way to get a guarantee is to buy off a dealer. 2nd hand cars from private are bought as seen. You being named driver for a short period of time won't have any influence on a new insurance deal I'm afraid.
Dealer aka car-salesmen :D Always find them annoying when they try to BS their way to potential buyers (from my experience!) but you are correct that is the only way to get a reliable 2nd hand car. Appreciate your feedback.
 

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Sorry not trying to divert the topic here but couple of questions regarding car expenses and insurance:

Any suggestions Joppa on reliability issues when buying a secondhand car. I mean is there a means to test that the 2nd hand car is not going to breakdown within couple of months after buying it. My assumption is that there must be some vendors that offer guarantee for certain time before the car would need any kind of repairs etc.

Also, although I haven't been living in the UK since leaving in 2003 but I do now recall that I have been here in between and till 2009 by father kept me as the secondary driver in his car insurance and moreover, the last time I was temporarily on a car insurance, for a month, on my friend's car when I was here in 2010 for a short period of time. Would this contribute in determining the car insurance or not?
If you buy a fairly new car within warranty period (generally 3 years), and buy it off a franchised dealer, you get good warranty coverage plus pre-delivery preparation, service and some sort of extra cover like breakdown. Also buy makes and models known for reliability, generally Japanese and German. I'd stay clear of French cars (esp Renault) as they tend to have annoying electrical faults (engine management light coming on and engine losing power etc). You can get at least 1/3 off buying a one-year old car with around 10,000 miles on the clock. But check some new car offers as they come close.

There are two issues regarding UK driving record. Insurance company goes by how long you have held full UK licence and use it as UK driving experience. And if you had insurance in your name during the past two/three years and were claim free, then any no claim bonus/discount will be transferable to a new policy.
 

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If you buy a fairly new car within warranty period (generally 3 years), and buy it off a franchised dealer, you get good warranty coverage plus pre-delivery preparation, service and some sort of extra cover like breakdown. Also buy makes and models known for reliability, generally Japanese and German. I'd stay clear of French cars (esp Renault) as they tend to have annoying electrical faults (engine management light coming on and engine losing power etc). You can get at least 1/3 off buying a one-year old car with around 10,000 miles on the clock. But check some new car offers as they come close.

Can this 1/3 off buying a 1 year old car can be bought from dealers or has to be from the seller directly? I assume, if bought from dealer there will be pre-screening of the car as it will come with some sort of assurance from the dealer. I am not comfortable buying 2nd hand car directly from seller as its difficult to determine reliability.

My preference would be to get a small/ medium size car (no French, as you stated) as they provide relatively better mileage than a bigger car as well as low maintenance cost.

My budget is fairly limited for buying a car considering there are so many other expenses but I gave it some thought and feel the public transport is not really that cheap here, in fact ticket costs have gone up considerably for public-transport in the last 10 years; hence I see less incentive to travel by bus or train when spending a little bit extra can provide convenience of a car (provided it does not breakdown frequently).

There are two issues regarding UK driving record. Insurance company goes by how long you have held full UK licence and use it as UK driving experience. And if you had insurance in your name during the past two/three years and were claim free, then any no claim bonus/discount will be transferable to a new policy.
I have a UK driving license since 1997, hence for last 15 years if that is of any help. But what I do not have is a continuous 2-3 years name on insurance as it was only continuous as a 2nd driver in my dad's car till 2009 (unfortunately he passed away due to medical problems) and since then I only had my name in my friend's car insurance for 2 months when I was here in 2010 to visit my mother.
 

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Can this 1/3 off buying a 1 year old car can be bought from dealers or has to be from the seller directly? I think this deal does look appealing as 10K miles is a lot but, I assume, if bought from dealer there will be pre-screening of the car as it will come with some sort of assurance from the dealer. I am not comfortable buying 2nd hand car directly from seller as its difficult to determine reliability.
I share your concerns and I'd only buy nearly-new car from a franchised dealer as part of manufacturer-backed used car warranty scheme. You pay a little more but it's worth it for peace of mind. For older cars - more than 3 years and out of warranty, private sale may be considered but in that case check for service record and all bills and MOTs, and preferably get the car checked over by a mechanic before buying. A honest seller shouldn't mind provided you don't waste time.

My budget is fairly limited for buying a car considering there are so many other expenses but I gave it some thought and feel the public transport is not really that cheap here, in fact ticket costs have gone up considerably for public-transport in the last 10 years; hence I see less incentive to travel by bus or train when spending a little bit extra can provide convenience of a car (provided it does not breakdown frequently).
Like most people, I combine driving with public transport. As I live over 200 miles away from London, I almost always take a train to London, but for a journey up to, say, 50 to 100 miles, I normally drive.

I have a UK driving license since 1997, hence for last 15 years if that is of any help. But what I do not have is a continuous 2-3 years name on insurance as it was only continuous as a 2nd driver in my dad's car till 2009 (unfortunately he passed away due to medical problems) and since then I only had my name in my friend's car insurance for 2 months when I was here in 2010 to visit my mother.
You will be regarded as having good UK driving experience so should not be penalised, though they also ask how long you have been living in UK, so you may be penalised (charged higher premium) in some other ways. You won't get 20%-60% or more off as no claim bonus because you haven't had recent insurance in your name.
 

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Would driving on a foreign license drastically increase insurance costs, even if its perfectly clean? Would it then help to apply for a UK license ASAP?
 

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Would driving on a foreign license drastically increase insurance costs, even if its perfectly clean? Would it then help to apply for a UK license ASAP?
It seems so. We've read posts warning that insurance companies charge unaffordable premiums to the point it is arguably cheaper just to apply for a UK provisional license. That is what we'll be doing. My partner needs some "learner driving" anyway to learn a right-hand drive, left shift car AND deal with all those novelty new roundabouts she simply didn't see in her part of the US. :D
 

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Would driving on a foreign license drastically increase insurance costs, even if its perfectly clean? Would it then help to apply for a UK license ASAP?
As stated, the answer is yes. Depending on what kind of licence you hold, it's either simple or time and money consuming. If you have a NZ licence, that can simply be exchanged for a UK one without taking any tests. But if you have a US one, you have to get a provisional licence, pass both theory and practical tests and apply for a full licence.

In either case, getting driving lessons is highly recommended.
 

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As stated, the answer is yes. Depending on what kind of licence you hold, it's either simple or time and money consuming. If you have a NZ licence, that can simply be exchanged for a UK one without taking any tests. But if you have a US one, you have to get a provisional licence, pass both theory and practical tests and apply for a full licence.

In either case, getting driving lessons is highly recommended.
My wife has an Irish license, would her's be able to transfer over to a UK one? If we put the insurance in her name would it be cheaper? Or is it possible to register and insure the car in Ireland and simply drive it over, or is this a big no-no?
 

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My wife has an Irish license, would her's be able to transfer over to a UK one?
Yes, it can be exchanged for a GB licence, as Ireland is an EEA member state. You will need Form D1, which you can get at a Post Office. See: Exchanging your foreign driving licence : Directgov - Motoring

If we put the insurance in her name would it be cheaper?
If she were to be driving on a GB licence as opposed to a foreign one - then yes, as Joppa explained above.

Or is it possible to register and insure the car in Ireland and simply drive it over, or is this a big no-no?
Only permissible if your intention is to visit the UK for less than six months.

"For anyone wishing to stay in the UK for longer than a six month period, their vehicle will normally need to be registered and taxed at Driver and Vehicle Licensing Agency (DVLA)" (from: Driving in the UK with non-UK number plates : Directgov - Motoring)

teuchter
 

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I'm not sure how it would work for your NZ license, but getting insurance on my US license was going to be just as expensive as insuring me as a newly licensed UK driver. Both quotes came out to over 1000 pounds. The problem is that it is expensive to insure a foreign license, but they also heavily penalize new drivers with insurance premiums. It doesn't matter to them that I have had 10 years driving experience in the US, it matters that I have no driving experience in the UK. And the only reason it is that cheap is because I am over 25.

Not sure if this will be different for NZ or other licenses that can just be exchanged though, as I have had to go through the whole process of getting a provisional and taking a test.
 
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