Far too many people just look at the price tag of a vehicle and just consider that to be the only thing they need to worry about. They believe that as long as they can afford the vehicle, they can afford all of the associated costs and running expenses. In reality, it couldn’t be further from the truth.
While there are no numbers or guidelines to use, buying a luxury car doesn’t mean you can automatically afford the insurance, repair costs, and even the amount of fuel that it uses. Since there are so many different running costs to keep in mind, it’s important not to overlook just how expensive it is to own and actually use a vehicle.
So in this post, we’ll be looking at the running costs of a car that most people tend to forget about.
Repairs and modifications can cost a lot of money
There are many different car modifications and repair considerations to keep in mind when buying a vehicle. Some people like to modify their vehicle with some additional features and others might encounter frequent repairs because they bought a used car. Whatever your situation is, it’s important to remember that there are many car repairs that cost a considerable amount of money. You shouldn’t overlook these costs and you should try and get a quote from a local mechanic to help you understand how much it’ll cost to maintain certain types of vehicles.
Insurance is a running cost that can change now and then
Insurance is a recurring cost that can be lowered if you’re smart about how you drive. For example, if you have a relatively clean record then your insurance costs are going to be a lot lower than someone who has only recently learned how to drive. Make sure you get different quotes from your chosen insurance companies to see who can offer you the best deals. Just make sure you check just what features the insurance company offers and how much they’re willing to cover your expenses.
Don’t forget that your car depreciates very quickly
Regardless if you’ve bought a Chevy Silverado 1500 or an electric vehicle, your car is going to depreciate extremely quickly. In fact, it’s estimated that your car’s value will decrease by around 20% to 30% by the end of the first year. That’s a huge amount of money that doesn’t sound like an “expense” per se, but when you consider the possibility of selling or trading in your car then it puts it into a different perspective. When you buy a car, you’re going to “lose” a huge chunk of its value within the first year so it’s extremely important to finalise your purchase decision as soon as possible and pick a car that you’re willing to stick to.
Lastly, don’t forget fuel costs
And of course, we can’t forget the costs of fuel. Fuel keeps your car running and is a recurring expense, but some cars tend to use more fuel than others. Do your research and check the fuel efficiency of the vehicles you plan to purchase to see how much you’ll be spending across a year.