It’s not secret that it can be expensive to own a car. And with prices always on the rise, which components are the most expensive and how can you limit how hard it hits your wallet?
COST BREAKDOWN (BASED ON MID-SIZE SEDAN)
Data from http://rac.com.au/
Standing costs (As opposed to running costs) are the things that you have to pay just for your vehicle sitting in your driveway before you even get it on the road and put some kilometres on the clock.
For a new medium-sized sedan this is on average:
On Roads, Stamp Duty, Registration, Insurance: $39
Total Standing Costs: $143/week
These are the costs that you would typically expect to be paying and work it into your budget. Choosing a car with low running costs can save you a lot in to long term.
Once again, using our medium-sized sedan example, typical running costs are:
Total Running Costs: $50/week
Although if you break these costs down to a per-week figure, it doesn’t look too bad, once you look at it annually or per kilometre, it might change your tune.
$10,000+ per year
$0.67 per kilometre
$193 per week
To some, these figures will look reasonable, and not to others. Run the numbers on your next vehicle to see what you’ll have to pay per year, week and kilometre to make sure that you’re within your budget.