What car should I buy?

Almost every bad car decision starts with a budget set on the monthly payment instead of the total cost. Work out the whole number first, then shop inside it.

• Add up the purchase price, taxes and registration, insurance for a full year, fuel or charging, and a service fund. That total is your real budget.
• If you are financing, decide the maximum you will borrow before you walk into a showroom — a longer term makes an expensive car look affordable while costing far more.
• Keep roughly 10% of the purchase price aside for tyres, brakes and the first unexpected repair, especially on a used car.
• Cars in the $10,000–$20,000 range often cost more to run than newer ones. A cheap purchase price is not the same as a cheap car.

Buy for the driving you do most weeks, not the two trips a year you imagine. Renting for those trips is cheaper than owning the wrong car.

• Mostly city and parking on the street: a hatchback or small crossover — short, easy to park, cheap on fuel.
• Long commute on highways: a sedan or estate — quieter, more comfortable at speed, better economy than a tall car.
• Kids, dogs, bikes, or gear every week: an SUV, minivan or estate. Measure the boot with your actual pushchair or gear before you buy.
• Rough tracks, snow, towing: you need all-wheel drive and ground clearance. If you do not, you are paying for weight and fuel you never use.

The same money buys a small new car, a mid-size two-year-old car, or a large five-year-old car. Which is right depends on how long you plan to keep it.

• New: full warranty, no history to worry about, the worst depreciation. Makes sense if you keep cars for 8+ years or need specific new tech.
• Nearly new (1–3 years): someone else has absorbed the steepest drop in value, usually with warranty left. This is the value sweet spot for most buyers.
• Used (4–8 years): far more car for the money, but budget for maintenance and insist on a full service history and an independent inspection.
• Whatever the age, check the vehicle history for accident damage, outstanding finance and mileage that does not match the paperwork.

This is a maths question, not an identity question. It comes down to your daily mileage and where you park at night.

• Electric: cheapest per mile if you can charge where you park, and quiet and simple to drive. Without home or workplace charging, the savings largely disappear.
• Hybrid: the safe middle — much better city economy than petrol, no charging habits to change.
• Petrol or diesel: still the simplest choice for very high mileage, towing, or remote areas with thin charging coverage.
• Compare cost per mile over a year, not sticker price. A cheaper car doing 20 mpg can cost more over three years than a pricier one doing 45.

Twenty minutes on roads you actually use tells you more than any review. Drive at least two cars back to back on the same day.

• Drive your commute, not the dealer's route: the junction you hate, the hill, the car park you use.
• Park it. Reverse it. Fit your child seat, your luggage, your dog. Comfort at ten minutes is not comfort at two hours.
• Turn the radio off and listen for whines, knocks and wind noise, then check every button works.
• Never buy on the same visit as the first drive. Sleep on it; the good deal will still be there.

Five mistakes that cost buyers the most

• Buying more car than the budget allows because the monthly payment sounded manageable.
• Choosing on top speed or 0–60 when 95% of the driving is a 30-minute commute.
• Ignoring insurance until after the deposit — some models cost double to insure.
• Buying an SUV for the occasional trip, then paying for the fuel and parking every day.
• Skipping the independent inspection on a used car to save a couple of hundred dollars.