Reviewed and updated 20th February 2019
It’s no secret that cars are expensive, not just to buy, but to maintain.
There are a range of costs that you need to be aware of as a car owner and it’s important that you factor these into your budget.
The obvious cost is fuel. If you don’t fill up the tank, you won’t be able to get anywhere. Choosing a fuel-efficient car can help you save money over time.
Registration fees vary from state to state and unfortunately, these are not one-off payments and they will need to be renewed every year.
Insurance is likely to be the most expensive part of owning a vehicle, and there are different types and levels of cover. Compulsory third party insurance is a legal requirement for all drivers and it covers the cost of someone being injured in an accident where you are at fault.
Comprehensive cover pays the repairs or repayments costs for you or others, and it covers damages caused by natural disasters and theft. The amount you pay in insurance will depend on certain factors, including your age, driving record, the car model, distance travelled, and where you park the car on a regular basis.
4. Regular servicing
Just like going to the dentist for a check-up, your car also needs some TLC to ensure it’s running in tip top condition. Regular car maintenance ensures that your engine is operating well and there are no serious car problems that can require more expensive repairs down the track. The frequency and amount of maintenance that your car needs will depend on the vehicle and how much you use it.
5. Spare parts and repairs
During the life of your car, it may require repairs or replacement of parts. New vehicles are typically covered by warranty, so the manufacturer will rectify any faults that occur during this period, including all parts and labour costs. When you are outside of the warranty however, repairs - including those for normal wear and tear - can add up.
6. Loan repayments
If you purchased your car by taking out a loan, you’ll need to factor in your regular repayments costs.
As you can see, owning a car has many costs and these may increase over the years. You’ll have to eventually decide whether it’s financially viable to continue paying for the maintenance of your car or if you’re better off purchasing a new car.
If you decide you want to buy a new car, Mortgage Choice can even deliver your new car straight to your door. We can also help you find a car loan for a new car that suits your needs or assess your current loan to see if it’s still suitable for you. So why not give us a call today!