The Real Costs of Vehicle Ownership

Have you ever seen an advert advertising a car at Rxxxx per month, only to be disappointed later? To avoid disappointment, here are all the costs you need to consider when buying your first car: the monthly instalment, insurance, fuel and savings for maintenance and services. 

The pandemic has changed the economy, prices and spending habits significantly and as such, the costs of vehicle ownership aren't as low as they would have been in previous years. When buying a car, one needs to take into account that it doesn't end with the monthly instalment, there are other fixed costs (insurance) as well as variable costs such as fuel and savings for maintenance and services. The upside is that COVID-19 has seen many companies move to operating fully remotely, thus saving fuel for commuters. Even so, the monthly instalment of the car and fuel account for 79% of the total spend of car ownership. 

When buying a car, one should take a holistic view of the costs associated with owning a vehicle and ensure that they can afford the costs. This means doing thorough research when it comes to insurance, getting as many quotes as possible to find the best insurance at a price that is reasonable. The same applies to maintenance: background checks and investing in quality care for your car will save you later. There may be costs that arise unexpectedly, e.g. tyre bursts, windscreen cracks, and if these aren't covered by your insurance, it is important to make provision for them, just in case.  

The costs of car ownership have increased but being financially savvy and working according to your affordability can make it less daunting.