Cars have been perceived both as common means of commuting as well as expensive toys that satisfy your passion and obsession with speed, thrill, and various other factors. Owning a dream car someday is pretty much an important bucket list item in people’s books and when you finally achieve that goal, you realize that there’s much more to owning a car than just buying it. CarIndigotries to explain how running a car can cost you way more than what you would expect if you don’t do it right.
Before you venture out to buy the car of your dreamsor simply purchase one for your daily commutes, it is important to know that the exact financial preparation that needs to be done in order to have a car in your driveway is not just accumulating the money to purchase one. Cars, like any other modes of transport that are present today, are mere machines and like any machine, they need power, care, and support in order to run.
It is an important thing to know about the financial mechanics of running a car before purchasing one because the expenses might be way more than what you calculate sometimes. The average yearly cost of owning a car in the USAis said to be around the $5,300 mark according to some recent surveys. This number fluctuates from state to state and includes the average costs for gas, insurance, car payments, service, road tax, and so on. And surprisingly some surveys reveal that most people underestimate the cost of owning a car by 50%.
This underestimation and ignorance of the actual running costs can not only impact your pocket in the long run, but it will also be a problem for the environment as studies suggest that with the right knowledge of the actual cost of running a car amongst the car owners, there might be about 37% fewer cars on the roads which will further have a healthier impact on the environment.
The costs of running a car can be divided into two categories. The first category is known as ‘Standing Costs’ and the second one is known as the ‘Running Costs’ category. Standing costs include the various expenses that are not generally required for the vehicle to function, rather they are focused more on the documentation and factors that affect the resale value of your car. Insurances, road taxes, interests, and depreciation values all fall under the 'Standing Charges' category.
Unless your car is an off-road only car with a Statutory Off Road Notification document, you are liable to pay for insurance as it is a legal requirement. Always search around for the best deal in insurance and in this way you can save up some money. Road taxes generally depend upon the age and emission levels of the vehicle and vary from state to state. Interest rates definitely count as a standing cost if you bought your car through financing.
Depreciation values are one of the major factors that need to be considered while evaluating the standing costs of your vehicle as cars do tend to depreciate in value over time but you can always reduce the rate of depreciationby being smart and researching. A simple tip would be the fact that new cars tend to depreciate at a higher rate when compared to used cars.
The next category seems to be ‘Running Costs’. These are the factors that we usually consider thoroughly before purchasing a vehicle and if you misinterpret some points, there’s a high chance that your car might cost way more than what you expected in the first place. First up are the fuel costs. It is very important to consider your intention behind buying a car and choosing the right car for its intended purpose as gas prices are one of the major costs that influence your running costs.
You definitely don’t need a gas-guzzling supercar for your daily commutes to work at a distant part of the city even if you have the means to afford the car in the first place. Fuel economy, range, and the purpose on which you intend to buy the car should be considered before buying a car to avoid unnecessary gas bills. Next up on the list is the obvious service and repairs. Just like any other machine, cars require timely service and repairsif necessary not only to run them smoothly and fine but also to save your car from burning a hole through your pockets.
If you ignore any issues or regular services of your car, the most likely thing to happen after you ignore these issues will be a long bill of repairs and service charges from any major failure of a part or due to other reasons. These are unnecessary expenses that you can definitely avoidby being a bit considerate towards your car and following the service book. Other factors that come in running costs include parking charges, tickets, and towing charges which can usually be avoided if you are aware of your car’s health and your driving style and habits.
These are some necessary things that a lot of car portals tell you to consider so that you can buy the right car for the right kind of purpose and money. Factors like these cannot be ignored because the cost of owning a car does not just include the amount spent to purchase one, it also consists of all the standing charges and running costs that make the car healthy and legal to be running on public roads.
And it is the combined costs that you might need to spend in the long run that you need to calculate and misinterpreting or not taking it seriously will not only be a catastrophe for you financially, but it would also have an impact on the environment if you don’t sensibly think of the fact if you really need a car or not.
The fact of the matter is that misinterpreting the running costs and being too optimistic about buying a car will eventually add one more car on the public roads and with a large chunk of people following the same path will lead to more cars on the roads than what is actually needed, which will further impact the environment due to the increase in pollution caused by vehicles.