With the recent government decision to cancel the expected 3p rise in fuel tax this autumn and instead freeze the rate for the rest of 2012 instead, investing in a new car may become more attractive to drivers all over the UK.
The tax break
In short, the tax break ensures that oil prices stay as they are. With recent developments such as the Eurozone crisis, many supermarkets and other oil dealers are offering low rates in a bid to entice customers. Combined with the tax break, this ensures that oil costs are relatively low for the foreseeable future.
Whilst this doesn’t change the price of the car itself, it will certainly help keep the general running costs down after you’ve purchased it.
This helps when purchasing a new car as it gives you fewer costs to consider. With the money effectively saved from fuel, there is arguably more money left to put towards other aspects, such as insuring the vehicle.
When selecting your new car you should still consider the fuel efficiency which it offers. No matter how low the fuel may be thanks to the tax break, you will still want a car that performs as efficiently as possible to ensure you achieve value for money. High efficiency combined with low fuel costs is the perfect combination for those looking to cut costs on their motoring.
Further recent developments have also ensured the possibility of low interest loans. In a similar bid to the interest-fixed mortgages being offered, the various low interest rate loans being made available ensure reasonable and affordable personal loans for the public.
These low interest options result in more of your money being available. This makes repayment a much easier prospect, which makes the loan itself more financially viable.
Insurance may still be expensive, as with any new car, but the low interest rate loans give you more financial room to deal with this extra expense.
Add up the benefits
When you start to combine the cheap, low interest, loans with the tax-freeze on oil, the benefits of investing in a new car start to become obvious. By saving money both on the loan and fuel, the new car will not be as expensive as originally thought; the tax cuts save you money well into the repayment schedule of the loan. Of course, earlier repayments will ensure this is achieved even sooner, so it never hurts to start saving money as soon as possible.
With a comfortable repayment scheme and careful budgeting, paying for your new car should be fairly easy; both on you and your finances. As long as you keep track of the costs, the financial responsibilities shouldn’t be too difficult to cope with.
In conclusion, there are some surprising benefits from the current economic situation that make the prospect of purchasing a new car considerably less daunting. Whether it’s the tax break afforded by low interest, these benefits ensure that finding the money for a new vehicle isn’t too difficult or financially taxing.