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The true cost of ownership

2005-03-30 16:10

The True Cost Of Ownership

Do your sums

Remember, when you buy your car, to look at the bigger picture and consider all costs that come into the total ownership equation. To get an idea of what the car is going to cost you on an annual basis, factor in the following:

  • Monthly premiums. There may be periodic interest-rate increases so you will need to budget approximately 2% more to allow for increased payments.
  • Service and maintenance costs. These need to be factored in if you don?t have a service or maintenance plan in place with the dealer. It is worth finding out how much it costs to have your car serviced and then set aside money each month to pay for future services related and maintenance costs.
  • Tyres. The cost of replacing tyres varies between makes and models of cars but it is always an expensive exercise. On average, tyres need to be replaced every 40 000 to 60 000 km.
  • Insurance costs. These may increase if you have made large claims in the past. You will also need to factor in costs relating to possible accidents such as excess payments.
  • Petrol. Some cars consume more petrol than others, and it is worth putting aside some money each month to cover petrol costs.

    Click here to work out monthly repayments


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