Home / Car News / Car Ownership: All The costs Exposed

 

Learning to drive can be so exciting, don’t you think? The idea of being out on the open road. Getting from A to B with no issues of transport, or changing from buses to trains, etc. However, the reality of car ownership can be slightly different when it comes to it. There is much we need to consider from actually buying a car to keeping it in good condition for the next time we want to buy one. There are often hidden costs we forget to factor into our budgets or costs we don’t even think about from one day to the next. I thought now would be the ideal time to expose all of the costs of car ownership. Maybe it will help you to budget for things in the future.

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Buying the car and the confusing finance options

Buying a car can be one of the most confusing things you do. The finance options can be complicated if you don’t understand them completely. You could decide to purchase it through a lease or personal contract purchase agreement. These tend to offer lower monthly payments and sometimes means that you don’t need to put any initial payment down upfront. Which can be super cost effective. However, in a lease, you do need to hand it back at the end. With a personal contract purchase, you can choose to exchange it in, pay off the outstanding amount or hand the vehicle back. Other people consider using their savings, their own personal loan arrangements with a bank or even secured loans on their properties. One of the most common ways to finance the car is through a hire purchase agreement. However you decide to buy the car, make sure you are fully informed before signing on the dotted line. Otherwise, you may find unforeseen fees or costs cropping up when you least expect it.

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Petrol versus diesel and running costs

One thing so many people don’t factor into their monthly budgets with their income is the running costs of a car. Petrol can often be cheaper to buy but is it as cost effective in the long term? When deciding on this, you need to workout how many miles you may do a year. There are simple fuel calculators online that can help you work out your petrol and diesel costs. It might be a worthy exercise to perform before buying a car to make sure you buy the right engine type for your needs.

Insurance quotes

Insurance isn’t always a cost we like to pay out, but it is essential to protect us in the future from any accidents we might be involved in. Looking online there are various different insurance companies so it may be worth using some comparison sites to workout the best quote and company to use. There is a lot of factors such as how many years no claims you have, your age, occupation and even where you live and how the car will be stored. It’s important to be honest with insurance companies, as this may go against you if you are found to be giving false information.

Maintenance costs and what happens when there is no warranty

A new car will come with some form of warranty which typically lasts three years, but what happens if you decide to keep the car longer? You then need to factor in the costs of MOT’s, the cost of parts and labour to fix your car if it breaks down. While it may mean additional spending, extended warranties can work well, as well as paying monthly for a breakdown service, just in case. No one truly knows the cost of what this will be, but you can always be prepared.

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Let’s not forget the bodywork

Bodywork is just as important as the engine itself, you need to factor in the condition. Dents and scratches can cause major damage if not taken care of quickly. They can cause bodywork to rust or even become further damage, meaning a higher price to pay to rectify it. The same can be said for things like windscreen chips, better to repair things like that than having to pay out for replacement parts, windows and panels.

Keeping your vehicle in good condition for the next time you need to buy one

Finally, it is important to take care of your car from the outside in to help you obtain the best valuation for it, come the time you want to change it.

 

About the author: Ahmad Wali

 

Ahmad Wali is associated with automotive industry from past 4 years. Also the member of the Cars Edition Magazine and critique for latest car reviews. Apart from Automotive industry he is an Entrepreneur running blog network including UK eBest Cars. Say Hello on twitter

 

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