Super Quick Guide The Costs Of Running A Car

| July 17, 2015 | 0 Comments

There are many costs involved with owning a car, and they are often forgotten about in the excitement of a new vehicle. However, all those costs should be considered when you weigh up your budget for a new car – and if they aren’t, then you could be in for some nasty shocks down the line. Let’s take a look at what to expect.

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Buying a new auto

Of course, your biggest outlay will be for the car itself. Whether you are buying new or used, it’s going to take a considerable investment to buy a car that is both suitable for your driving experience and durable enough to last. You also have the finance option – but if you take this, then your costs will be even higher. In some cases, you could end up paying almost double the value of the car – if you have a five-year car loan at 10% APR, for example.

Insurance

All drivers need insurance for their cars – it’s a legal requirement. Your insurance costs will vary depending on your age and experience. Younger drivers will often find that they have to pay enormous insurance premiums – particularly if they drive a vehicle with a big engine. However, older and more experienced drivers can also expect higher costs if they cause an accident. If you are deemed to be a dangerous driver, you will also have to pay SR22 insurance. This is a certificate of financial responsibility that is given to individuals who have had their driving privilege suspended or revoked.

Maintenance

Maintenance costs for a vehicle can sometimes run into thousands of dollars per year if you are unlucky. Be prudent when you are buying and you will reduce the risks of some of those costs. You will also cut down on the need for maintenance by treating your car well. Drive safely at all times, and be aware of how it feels. If something’s going wrong, it can often be fixed before it turns into an expensive repair.

Fuel

Fuel consumption is definitely something to look at when you are buying a new car. The more miles you can get out of a gallon, the less money you will pay out at the pump. You can also cut back on your costs by driving at optimum speeds. This varies from car to car, but as a rough guide you should keep your revs at 2,500 RPM or below. You might be surprised at the savings that optimum driving speeds can bring – up to 50% of all car fuel consumption is needless.

Legal costs

If you aren’t a safe and sensible driver, you can expect to be hit with plenty of legal charges throughout your driving lifetime. Parking and speeding tickets are more common than you might think. Even the smallest bump into another car can lead to long drawn out insurance claims that may end up in court. Be as safe and as sensible as possible, however, and you will reduce the risk of many of these legal challenges.

Hope that’s helped – as you can see, there is plenty to think about before you make your next automobile purchase.

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Category: Car Loan

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