Affording the purchase and carrying the monthly costs are different questions. Use your own parking, drivers and routes to build a realistic budget.
What to have ready
Before you start
Build four parts: acquisition, fixed ownership, usage and eventual disposal. Fixed costs include parking, insurance and licensing; usage adds fuel or charging, tolls, destination parking and consumables. Allow separately for repairs, examination and depreciation. TD's 2026 fee table distinguishes petrol cars by cylinder capacity and pure electric private cars by rated power under the applicable effective-date rules. Do not budget every EV using the former weight-based fee structure.
What to do, step by step
- Obtain actual parking and insurance quotes, declaring driver age, experience, probationary status and named drivers. Check excesses. A friend's premium is not a dependable estimate for your own policy.
- Read engine capacity or rated power and vehicle class from the particulars, then use the effective date to check TD's current fee table. Divide annual licensing, insurance and planned examination into a monthly reserve.
- Estimate mileage, tolls and destination parking from a normal week. EV owners should include public-charging parking and overstay fees plus home-installation costs. Low weekend-only use still carries parking and insurance fixed costs.
- Compare cash and finance using total payments, interest, charges and early-repayment terms. Include servicing, tyres, batteries and unexpected-repair reserves, then estimate sale expenses and a reasonable depreciation range.
Costs, timing, and things to check
IA notes that market value and depreciation can affect claims, while excess depends on driver and policy conditions. An outstanding car loan may not equal a total-loss insurance payment. Include that potential gap in the household's financial assessment.
If deciding whether to own a car, compare the same monthly budget with public transport, taxis or other lawful services and the time you need to save. Treat the worksheet as a decision aid: an estimated resale price or unapproved charging grant is not cash available for current bills.
A practical example
Two equally priced cars can have different insurance, charging-installation and tyre costs despite one using cheaper energy. Combining fixed and usage costs at realistic mileage reveals the monthly difference that the fuel-price comparison misses.
Use real quotes and routes, including monthly reserves for annual charges and repairs.
Official information and enquiries
These are the reference and service entry points for this guide. Check current fees, eligibility, and schedules with the authority. The preparation date is not each source's official update date.