After your house, your car is usually the second most expensive purchase you’ll ever make in your life. So it is really important that you are well aware of the impact having a vehicle might have on your finances.
What are the purchase costs?
First off, there are initial costs. These include:
• Car registration
• Compulsory Third Party Insurance
• Other insurance costs
• Mechanical or other inspections
• Dealer delivery charges
• Government taxes and levies including stamp duty and transfer fees
What everyday costs should I budget for?
Then of course, there’s the daily expenses that come with having a vehicle of your own, the most obvious of which is fuel. But with oil prices fluctuating, petrol can be tough to budget for. Aside from fuel, other costs are:
Insurance – If you need all-inclusive or third party, fire and theft insurance aside from the required third party included with your registration, this must be factored into your budget as insurance costs can add up.
Loan repayments – If you required a loan for your car, these costs must be also be taken into consideration.
Regular services – Again, these can be quite expensive, especially if you are not comfortable doing minor work on your car such as oil and filter changes by yourself.
Spare parts and repairs – This includes tyres, filters, mechanical parts and lights. Repairs, including those for the usual wear and tear, can gradually add up, especially for non-standard or luxury cars.
Membership of associations and clubs – Annual fees of automobile associations that offer breakdown assistance need to be considered in your budget.
Registration costs – Unfortunately, this is not a one-off payment on purchasing the vehicle. Registration is a potentially annual drain on your resources. You may also be asked to provide certification regarding the mechanical performance of the vehicle. This can involve a trip to an inspection station and additional costs.
Having a car can no doubt add up to your costs. And money can be very hard to come by. But one of the best ways to make sure that you have some when you need it is to take on some extra work. Here are your best options at getting some extra work and some extra cash in your pockets.