When thinking of buying a car, the first thing you usually think about is what is your budget? Did you think about the ongoing costs needed to run a car?
If you are looking at purchasing a brand new vehicle you must consider a few things, remember your car may depreciate up to 35% of its value within the first year. You will also need to pay stamp duty, dealer delivery and any extras you wish to add. Before you realize you may be over your budget or can afford to add a few more luxury items!
Once you are ready to hit the road with your new car, there are many ongoing costs that you must be ready for.
Insurance is vital incase of any accidents or damage to your car, insurance is essential in that when you unexpectedly have a collision the company will fix it at a much lower cost. You will need to pay insurance either monthly or once a year to cover you and if an incident does occur you will need to pay excess. Prices can range from $900 – $3000; this amount will vary depending on your driving history, age and location you live in.
Maintaining your car will depend on how well you drive and take car of it. You need to service your car on a regular basis in order to change oils, headlights and tires if needed. There are many more components that need to be changed depending on the situation.
Petrol is needed for running your car, unless you are using diesel or gas. They are all weekly costs that needed to be paid for or you won’t be getting anywhere! It is no secret that the prices are increasing, you cannot refill with $20 any longer, and you will need at least $40 for a full tank depending on the size of your car.
Parking can be an issue for some individuals depending on where they live and work. If you are working in the city expect to pay at least $10 a day on parking, even if you live near the city negotiate a permit if possible to prevent yourself getting booked. You don’t want to have to deal with ongoing parking fees, they aren’t cheap these days.
The above factors all need to be considered before buying a new vehicle, if you cannot afford the expenses you may need to find a cheaper option. Perhaps it’s a smaller car, a bike or even a scooter; there are many products that can still get you to your destination!
