The True Cost Of Owning A Car (And How You Can Reduce It)

It probably won’t come as much of a surprise to anyone to say that owning a car can be expensive. In fact, alongside your house, it’s probably going to be one of the most expensive purchases that you ever make. Of course, when people think about the cost of a car they usually only think about it in terms of what you pay when you actually buy it. But the cost of owning a car actually extends beyond that. In fact, your vehicle can end up costing you a lot more than you thought in a lot of surprising ways. Here are just a few ways that a car will end up costing you money and how you can reduce it.

Insurance

Insurance is probably the largest and most obvious expense that comes with owning a car for a lot of people. The insurance that you pay will depend on a lot of different factors. It’s a really good idea to shop around to try and find the best deals on insurance if you can. It’s also worth considering whether to pay it yearly or monthly. Paying a large sum of money in one go might not be possible for a lot of people but paying your car insurance all at once actually works out cheaper than paying it monthly, since you will usually end up paying interest on it if you split the payments up. Of course, your insurance will always depend on you as well. The kind of driver that you are, as well as your age, gender, and location, will all have an impact on how much your insurance costs. This is a great incentive to drive carefully and avoid any speeding tickets or traffic offenses since those can drive the price of your insurance way up.

Payment plans

A lot of people assume that a payment plan is automatically the best option when it comes to buying a car. After all, if you’re avoiding the major issue of having to pay for the car upfront, then you’re in a much better position right? Well, that is definitely true, as long as you find the right car finance company. The wrong finance plan can leave you paying far more in the long run than you ever intended. Check the interest rates on any plan before agreeing to it. The last thing you want is to end up paying twice as much as you planned on.

Petrol

Petrol prices are always going up and down but filling up your car is always going to be a pretty hefty, regular expense. Again, this depends on the car that you own; smaller cars will obviously cost less to fill up. Then again, if you’re doing a lot of motorway driving, then a smaller car will actually burn through fuel a lot less efficiently. Don’t just assume that because each fill-up costs less that your fuel costs are automatically going to be lower. Figure out what you’ll be using your car for and factor that into calculating your fuel costs.