7 Hidden Costs of Car Ownership

car ownership cost

These days, owning and maintaining a car can be extremely costly. You would have to think about the maintenance, insurance, upgrading, fuel costs, and a whole lot more. You can’t just go ahead and impulsively buy a car, you definitely have to plan it out to avoid crashing your budget. It’s actually wiser to get a car finance these days, as the benefits are better.

Find out the hidden costs when buying a car

Registration

Every car needs to be registered after being purchased. The cost depends on which state you are in, the engine type, and the weight of the car. In Queensland, a four-cylinder private passenger car costs around $340 - and that is just for a light vehicle. The registration lasts for about 12 months, and after that, you would have to register and pay for it again. Aside from that, a fee of $52 is needed for traffic improvement.

Car Insurance

This part, in most countries, is often compulsory. The vehicle must be insured to cover the costs of damage and injuries in case of an accident. Car insurance has a hefty cost, and if you are not financially prepared, it can be a huge burden to you. In New South Wales alone, new car insurance ranges from $868 to $2607. The cost depends on different factors such as the model of the car, how often you use it, age, and gender of the buyer. Car finance companies such as ours covers full car insurance and registration upon purchase, which will be factored in and added to your weekly or fortnightly payments.

Excess Fees

Some car insurance claims may cost you some dollars, especially if you have excess to pay. What is an excess, you ask? It is the money that you pay for a claim when you get an insurance for your car. Some car insurance companies allows car owners to increase your excess to be able to reduce your insurance premium. If you do make a claim though, you have to be prepared for shelling out more money towards it.

Car Tyres

Tyres can be pretty expensive depending on the size and brand of the car. Tyres need to be replaced every now and then, and this can be heavy on the budget as each tyre averages at about $150. If you finance a car from Alpha, it will only cost you around $30 per week - and that includes servicing, too! What a huge difference, right?

Roadside Assistance

We do not know for certain what can happen when we are on the road. Assistance is always available for sure, but you would have to pay around $100 or more for the services.

Servicing and Replacement

If you want your car to always be in tiptop shape, then prepare for the costs. Car parts and gadgets can be expensive, so make sure to think before purchasing.

Car Depreciation

Experts say that a car is not actually a good investment. This is due to the fact that a car’s value depreciates fast, due to a wear, tear, and new models popping out on the market. The older it gets and the longer it runs, the faster it depreciates. You just cannot expect to sell it for more than or even equal for how much you have bought it.

Always think before you buy, and if possible, just go for car financing. It’s easier, more convenient, and way cheaper!