Crash Course in the Cost of Car Ownership

Saving for a car? A CRASH COURSE IN THE COST OF CAR OWNERSHIP Sara, 25 years-old 2011 Barina, $10,000 Sara is 25 years-old and just about to become the new owner of a used 2011 Barina worth $10,000. But can Sara afford it? The ticket price is just the beginning. It's not uncommon to underestimate the hidden costs of car ownership. Let's take a look at how much extra cash Sara will need to budget... ON-ROAD COSTS $195 $695 Pre-purchase mechanical Registration and compulsory third party insurance inspection $1250 $510 Transfer fee, Comprehensive insurance stamp duty & set-up costs Sub-total $2,650 WHAT ABOUT ANNUAL RUNNING COSTS? + $1350 $262 Fuel Servicing 24/7 $150 $100 Roadside assist Тугes membership Sub-total $1,862 If Sara needs a car loan, she'll also need to factor in the cost of loan %24 repayments. For a loan of $8,000: Sub-total $2,090 p.a. ($174/month based on $8,000 @11%p.a. for 5 years) The little extras really add up - in this case to a whopping $6,602!! Saving for a car? Budget at least 30% extra to cover your on-road costs. $6,602 for on-road costs! $4 2$ (Case study is based on a 25 year-old, female first-time car owner and sole driver purchasing, registering and insuring a 2011 Holden Barina for $10,000 from a private buyer in Victoria. Fuel consumption and tyre wear is based on 15,000km per annum mainly city driving. Car ownership costs in other Australian states and territories are similar. All figures are an estimate.) MyBudget.