According to Ms. Leoni Moninska, a car insurance expert in Uswitch (UK), more than 1/3 of those surveyed by Uswitch said they received support from their families when buying a car. However, many first-time drivers are not aware of additional costs, including legal requirements.
Here are basic steps guided by Ms. Leoni Moninska to make an effective budget plan when owning a car:
1. Determining initial costs when buying a car
Vehicle purchase price: Determine the amount you will pay for the vehicle and arising costs such as taxes, registration fees, and transportation.
Payment method: If you buy in installments, calculate the deposit and monthly payments, so as not to exceed your financial capacity.
2. Insurance costs
Insurance is a mandatory fee. Annual insurance calculation is based on the type of vehicle, age, driving experience and other factors. Choose a reasonable insurance package to save costs but still ensure protection.
3. Fuel costs
Fuel consumption: Calculate fuel costs based on daily driving distance and vehicle fuel consumption. Fuel-efficient vehicles will help reduce this cost.
Spending plan: Estimate how much you spend on fuel each month and adjust your budget appropriately.
4. Maintenance and repair
Periodic maintenance: Calculate maintenance costs such as oil changes, brake checks, tires. This helps the vehicle operate well and avoids large repair costs later.
Repair savings: Prepare a savings for incidents outside the warranty.
5. Cost of registration and documents
Vehicle inspection: Calculate the cost of periodic vehicle registration for legal vehicle use.
Update documents: Prepare a budget for extending driving licenses, vehicle registration and administrative procedures.
6. Taxes and related fees
Vehicle tax: Some areas require annual tax based on vehicle type and fuel consumption.
Parking fees: If you live in an urban area, don't forget to calculate the monthly parking or parking fee.
7. Car usage cost
Tires: The cost of replacing tires will arise after a period of time. Calculate the time to change tires and prepare a budget.
Spare parts and accessories: Calculate the cost of replacing spare parts or upgrading accessories annually.
8. Long-term financial plan
Re selling costs: If you plan to sell your vehicle in the future, consider the loss of the vehicle.
Total cost of ownership: Summarize all of the above costs to have a comprehensive view of the cost of vehicle ownership throughout the use period.
9. Unexpected cost savings
Prepare a savings for unexpected or emergency repairs that you can't predict.
