Financial advice on cars and vehicles
Buying a car
There are a number of things you need to consider when buying a car. However, by being thorough and going through our checklist, you increase your chances of making a good car purchase.
When you buy a used car you should
- Know what kind of car you need – think through your needs and how much money you want to spend
- Check the market and read through the advert thoroughly
- Inspect the car carefully
- Check for encumbrances
- Test drive the car
- Write a contract
- Have your car insurance in order
- Consider how you will finance the car purchase
- Remember to re-register the car
- It may be wise to get a toll tag
Advice on buying a car also applies to other vehicles.
Buy new, used or lease?
All choices have their advantages and disadvantages. See the two most important advantages and disadvantages of the three options, and remember that the most important thing is to choose a car according to your needs
New car
+ "New car feeling"
+ Minimal running and servicing costs
– Large impairment when taken out of the shop
– Large financial outlay
Used car
+ Cheaper car with lower impairment
+ Reduced risk due to technological development
– Higher operating costs
– Greater chance of unforeseen events
Leasing
+ Low capital commitment and predictable costs
+ Reduced risk due to technological development
– You do not own the car yourself
– Risk of costs when the car must be returned, so-called "wear and tear charges".
Selling a car
It can pay off to take on the job of selling the car yourself. Whether you are experienced or selling your first car, it is important to be well prepared.
When you sell the car:
- Set a realistic price
- Prepare the car – perhaps you should have it serviced or tested before you put it up for sale?
- Advertise the car and take many good pictures
- Expect that the buyer will want a test drive, remember to have insurance in order
- Draw up a contract
- Settle your encumbrances
- Settlement and handover – ensure that the funds have been transferred and that the notification of sale has been submitted
- The buyer must pay the re-registration fee
- Cancel or transfer your insurance
- If you have a toll tag, you must cancel or transfer it.
Important terms
Costs of car ownership
Received a speeding fine?
Fines hurt your finances, and the best thing is of course to drive carefully and in accordance with traffic regulations. Should you nevertheless receive a fine, you should pay it by the due date. Such fines are government claims and should be prioritised to avoid ending up in Financial difficulties.
Treat your car to a garage
A garage can be a good investment for your car. It won't have to stand outside in all weathers, and you won't have to scrape ice or clear snow from it. This can extend the life of your car and perhaps also increase the value of your home. Apply for a loan for a garage, and don't forget to extend your home insurance to also cover your new garage.
Parking is a cost you need to consider when owning a car in any case. If you park in areas with charges, this can represent a significant expense that you should factor in.
Charging discount on electric cars
Did you know that you can get a discount on charging your electric car with Mastercard from DNB?
Check out electric car charging discount and cut costs on your car ownership.
Discount on everything you buy at petrol stations
Use Mastercard from DNB and shop with a discount at petrol stations. The discount applies to everything you buy at the petrol station: Fuel, food and snacks can become expensive over time. If you use Mastercard from DNB you save a little every time.
Insurance
What your car and vehicle insurance costs depends on several factors, such as the car's age, model and what we know about you. Remember that you can get a discount by bundling your insurance policies with us.
Road traffic insurance tax
Insurance companies are required on behalf of the state to collect road traffic insurance tax for vehicles with liability insurance. The tax is collected together with the mandatory liability insurance.
Loan
If you finance your car with a car loan, you must expect borrowing costs. Some loans are more favourable than others – did you know that you can get Green car loan at a more favourable interest rate?
Depreciation
Cars lose value over time. As a rule, depreciation is greatest at the start of the car's useful life, but you must expect impairment regardless of whether you buy a new or used car. Do not forget that condition has a significant impact on a car's value. In other words, it pays to take good care of the car you own.
Service and maintenance
You must expect significant expenses for maintenance, and for older cars you should set aside an extra buffer for repairs. Petrol, oil and tyre wear will, with normal use, cost you many thousands a year. In addition, there are other expenses for maintenance, MOT and servicing.
What do I do if I hit an animal?
Remember that you are required to report animal collisions.
Secure the scene
Act quickly, but safely. Switch on your hazard lights, position the car in a way that does not create dangerous situations in traffic, and put on a reflective vest. Also place a warning triangle. Contact emergency services first if a serious accident has occurred.
Report to the police
Report to the police on telephone 02800 if you have hit and injured an animal. The police will notify the game management committee, which is responsible for taking care of injured or dead animals.
Remember also to mark where you are and where the animal disappeared, for example by setting up temporary markers or taking pictures of the area.
Insurance
Insurance event on a car or other vehicle? As long as you report the collision to the police and the game management committee, you will not lose your no-claims bonus with us. The excess will also be reduced.
Buying and selling a boat
What do you need to consider when buying or selling a boat privately? Learn more about what you should check regarding the boat's condition, writing a contract, insurance, financing and re-registration.
Go through our checklist and ensure that the boat transaction is carried out safely for all parties.
