How much car can you actually afford?

A simple way to set a budget that includes running costs, not just the sticker price.

Work backwards from what you can comfortably pay each month, then subtract insurance, fuel, tax and a servicing allowance. Whatever is left is your finance budget — and it is almost always lower than the figure a monthly-payment advert suggests. Set the number before you start looking, and it becomes much easier to walk away from a car that stretches it.