It's not just the road tax which may cost up to another £500pa.
It makes little difference if you only do 2-4k pa - the extra cost is much the same as many hobbies - golf, football tickets, a reasonable meal for two each week etc.
But if you do say 12k pa the difference in cost between (say) a mid range Focus or Astra and 5-7 year old larger premium car is significant:
- fuel: about 50mpg vs around 35mpg = £500 pa
- set of tyres £240 vs £500 for premium
- general repairs: 1/2 year old hatch still in warranty vs £250-1000 for luxobarge
- servicing: £125-175 vs £250-500 for luxobarge
Overall the older nicer car would cost around £1500+ more pa to run - serious money not a trivial indulgence. Bear in mind if you buy a lemon a bill for £'000's is entirely plausible.
Individually we make up our own minds - modern, smaller, cheaper, functional or older, risker, costlier, larger. Car buying is driven at least as much by emotion as rationality - although we often somewhat dishonestly choose to rationalise the emotional.
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