Is owning a car expensive?

A car being a locomotive automobile is not cheap to own. Despite the price it may come in, a car will always cost you some good sum of money to own and operate. However, the cost of owning a car depends on several factors. The brand and model of the car will most probably announce the purchase cost value of the car which is always the first cost of owning a car. The high-end latest model car will always be expensive even to purchase besides the maintenance and operation costs.

However, there are some factors that AAA outlines as the determinants of how expensive or cheap it is to own a car in Australia. These are discussed below.

Car Ownership costs

1.      Car Loans

You could probably be stinking rich if you afford to purchase a best-rated car without some loan financing means. A finder.com statistician of the Australia Bureau of Statistics data found that within the 12 months to November of 2017, 1,182,613 new cars had been sold in Australia out of which 236,451 cars were acquired on some loans financing. This translates to 1 out of 5 cars sold in that season being under some loans. This explains the loan burden of owning a car in Australia.

2.      Fuel

Based on the prevailing fuel and gas prices in your area, fuel costs on car ownership varies from place to place. However, Australia recorded a rise in fuel prices at the inception of the year 2020 as to what budget direct reports. The average cost of running a two-car household in the major cities of Australia per week is recorded at $69.52 and $73.46 for regional areas in Australia. The fuel cost is also dependent on the car manufacturer’s engine capacity determining the consumption capacity of fuel and oil.

3.      Car Insurance

Most counties have the mandatory car insurance policy cover that every car must-have. They are always obtained at a price. However, most times these mandatory insurance covers are meant to protect against damage to third parties and therefore low in maintenance costs. Nonetheless, it is always recommended to cover your car with higher binding insurances. This comes at a cost. Nonetheless, the insurance market is very competitive in Australia today and with enough shopping around, you can settle on insurance which is reasonably priced and affordable.

4.      Registration and licensing

Most if not every country requires any new car purchased to be registered for a permit to drive in a public road. This is to be accompanied by a registered and licensed driver as well. Car registration is done at some fee while the renewing of the driver’s license is also done at some fee. The associated registration and licensing fees contribute to the cost of owning a car. AAA reports that the annual costs of registration, mandatory insurance, and licensing of two-car households in Australian to be $1588 for capital cities and $1472 in regional places.

5.      Maintenance and servicing

For a car to remain driving on the road with comfort, occasional maintenance and servicing have to be done. This is among the most inconstant costs of owning a car. You will never know when your car will blow a tire and unexpected occasions where the repair will be needed. Nonetheless, most new cars come with caped maintenance costs which explain the celling of maintenance costs that you should reach in a specific period. This is designed by car manufacturers to avoid being overpriced for maintenance services.

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Created on Jun 13th 2020 00:18. Viewed 315 times.

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