If you’ve never owned a car before, then it can be hard to know what’s required in terms of the financial strain it has on your household income. With that in mind, it’s worth knowing so that you can make the right decision when you’re shopping for the car you want. Here are the expenses that come from getting a car.

Paying In Full Or Putting It On Finance

The first and major expense when getting a car is the actual car purchase itself. Some buy new, others buy used, and some pay in full while others put it on finance. The decision is ultimately up to you and what you can afford right now. A lot of people do tend to go for the leasing, or financial option as it means you can hold onto your savings and providing the interest rates are reasonable, it’s just an additional monthly cost that comes out of your household income. That means you might not feel it as much. It’s an expense that’s certainly important as it can dictate what type of car you get, the make, model, and how old the car is. Make sure you decide what you’re going to do before you go car shopping so that you don’t make any rash decisions that you might later regret.

Cost Of Fuel

The cost of fuel is another big one because you might have got a great deal on the car, but the fuel costs can vary depending on whether you pick diesel, petrol, or electricity. The fossil fuels are becoming very costly as demands increase, and the availability of these fuels becomes more limited in it’s supply. Diesel tends to be the most expensive, so it’s worth factoring this in when you come to purchase your car too. You want to be able to run it on the road then realise that you can’t actually afford to because it’s too expensive.

Insurance & Road Tax

Insurance is something that you need in order to be able to drive your car, and depending on your situation and the type of car you own, you might be paying a small amount each year, or you could have to pay a considerable amount. Make sure you’re shopping around for auto insurance and that you’ve also factored in road tax too as an extra cost.

Warranty for Parts Breaking Down

If your car’s warranty has expired, you’ll be left to pay the bill out of your own pocket. This could amount to huge amounts of cash. Insurance will protect you against things like crashes and theft, but not against parts failing. So buying some additional cover is a smart move, look into companies like Cars Protection Plus that offer this.

Decor Updates

Decor updates are something that you might want to treat yourself too for when the car becomes a little worn, whether that be on the interior or the exterior. These are costs that aren’t necessarily going to be cheap either, so it’s worth considering what these might cost in terms of the car you’re buying and how new it might be as this can affect the price of said accessories. Technology might be something you want to add in too, which can be costly.

When it comes to expenses, make sure you’ve made accommodations for all of the costs involved so that you’re not out of pocket.

Greg Kononenko
Greg Kononenko

My name is Greg Kononenko and I am a full-time online blogger and owner of Dad's Hustle. I'm a dad, and my passion is to help other mums and dads to start their own "hustle" and improve the financial future of their families.

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