Owning a car is a huge investment. And if you think you only need money to pay for the vehicle itself, you might want to rethink that. Shelling out money for a car does not end when you bring the vehicle out of the shop and into your home. That’s just the beginning. You’ll need to pay for other things like maintenance, repairs, restoration, etc. during the course of your ownership. To give you a better idea of how much it actually costs to own a car, here are the expenses involved.
Fuel
Cars rely heavily on fuel to function. But how much does it actually cost to get your car running? The average cost of fuel is 11.2 cents per mile. Looking at the bigger picture, that’s about 1,700 dollars. But the cost of fuel changes over time, depending on supply and demand. Other factors like the road condition in your area, distance traveled, etc. would also come into play when computing your monthly fuel expenses.
Depreciation
Many people buy cars and consider them a good investment. Not only will you be able to live and travel with convenience, but you can also earn money once you decide to sell the vehicle. But many don’t consider depreciation. The money you paid to buy the vehicle will not be the value of the car several years from now.
In fact, your car depreciates 20% in value the moment you drive it off the lot. And then it further depreciates by 15% annually. These are just average computations, as the depreciation rate would also depend on factors like mileage, brand, and condition of the vehicle. This is a very significant cost that should be taken into consideration.
Insurance
Insurance premiums on vehicles can get very costly. That’s why some owners opt not to get their vehicles insured. But doing this runs the risk of losing more money in case of accidents or damage to the vehicle. It’s absolutely essential to get insurance for your car because you never know what could happen to it on the road. The good news is that there are several insurance options available. You just have to make sure you’re doing your research and taking the time to find the best insurance option for you.
Maintenance
All vehicles are prone to gradual wear and tear. The rate of that would depend on how often you use the vehicle, the conditions in which it is stored, and several other factors. Maintenance expenses can cost a lot of money. To save a little extra, you should always take care of your car or DIY your maintenance efforts.
Car owners should also consider the cost of repairs versus the cost of purchasing a new vehicle. Sometimes, we think that conducting maintenance and repairs periodically is helping you save money because you’re restoring your vehicle. But if it’s costing you a whole lot to have your car fixed, it might be even cheaper to buy a new car that’s functioning perfectly.
Licenses and registration
States impose registration requirements on vehicles in an effort to ensure the safety of motorists and civilians alike. As long as you have a car, you are bound to obtain vehicle registration, permit, and tax requirements. States would have different requirements and fees for vehicle registration. Do your research to determine how much it would cost you in your area.
Owning a car is a huge responsibility. Before you head over to Volvo Auckland, make sure you’ve considered these expenses and that they fit right into your budget.
