image source: toyota.com.au
Buying a new car is daunting. But the costs don’t stop when you drive the car off the lot. The size and type of car you choose will have a big affect on your budget for many years to come.
Read on to discover the true cost of running a car in 2016 and tips for choosing the right car.
In 2013 the RACQ conducted an analysis of the savings made by consumers who purchased smaller, more fuel-efficient cars. The findings were incredible with consumers saving an extra $53 per week by making this simple purchasing decision. Those who purchased larger more fuel-heavy cars were spending $2,801 more.
Tip: Not all small cars are fuel-efficient and vice-versa. Conduct research and also consider diesel car versions, so you can combine lifestyle and choice with the goal of saving on fuel costs.
Consider what your prospective car weighs
Did you know that the actual weight of your car has a bearing on the registration cost of your vehicle? For example, a light 4-cylinder car will cost much less to register than a 6 or 8-cylinder vehicle.
When purchasing a car make sure you find out the possible registration cost of your prospective car and factor this into the equation. Registration usually hits consumers each year when money is already tight – so make this a serious consideration.
Foreign cars versus Australian-made
Be sure to factor in the cost of parts and servicing of your prospective car. Car servicing is expensive business if the parts are not made in or for Australia. If you do have a ‘dream car’ in sight, be open-minded. Make a choice that won’t affect your bottom line in the future. After all, you want to be able to afford to put the petrol in the vehicle to drive it around. You don’t want a situation where your car is sitting at the mechanics and you can’t afford to pay to get it out.
Tip: Use NRMA's calculator to find your car model and find out the cost of running your car.
Get the right car loan
Make sure you use a reputable car finance company to secure a car loan. A reputable company will give you the right advice, pricing and service according to the choice of car you make. Build a relationship with your car loan company so you can get the best advice possible about the current market and also interest rate options.
Tip: Looking for a cost-effective car loan? Discover your options at Turn Finance.
Here’s a quick example of the true cost of owning a car in 2016:
The folks over at Money Buddy have crunched some numbers in terms of car affordability.
Read the full article here