The cost of owning a car is far more than just the purchase price. Depending on the age of your car, depreciation, or the amount your car reduces by in value, is likely to be the biggest cost. By and large, the newer and more expensive it is, the larger the depreciation amount. Although this cost is only realised when you sell it – it’s sensible to factor it into your thinking before you choose your next vehicle.
Other costs you will incur just by owning the car – even if you don’t drive it very much are:
· Annual Licensing (Rego) cost $109 (for a private passenger vehicle)
· Warrant of Fitness about $55 (assuming no repairs required to pass the WOF)
· Insurance – the cost of this depends on the vehicle and your age and driving record. It might not be cheap though – get a quote before you purchase your vehicle.
· Interest on your loan - if you need to finance your vehicle. Our advice is shop around to get the best rate. We can help you with finance – so if you need it – talk to us.
· This is getting complicated – but if you want to work out the true cost of owning your car – and you use your own cash to pay for it – you should factor in the opportunity cost of using your own funds. That is, the return on the money you could have got if you invested it, instead of using it to buy your car.
On top of these costs are the general running costs, these include fuel, repairs and maintenance (servicing), tyres and of course, fuel.
There are other costs that might be relevant to your situation such as diesel road user charges, breakdown service subscriptions and extended warranty costs, if you decide you want one.
Having thought about the costs, once you’ve decided it’s time to buy, The Car Brokers can help. We can help you determine the best vehicle for your specific needs and then find and negotiate the best deal for it. We can even help with extended warranties and loans. We will make buying your next car easy. Email us at thecarbrokers.co.nz - we’ll do the hard work and save you money.