What are the ongoing costs of owning a car

In the fast-paced modern world, owning a car has become essential for numerous individuals and families. Apart from the initial purchase expenses, there are several continuous costs linked to car ownership that need to be taken into account. These ongoing costs include service and maintenance fees, fuel expenses, and registration costs, all of which can add up significantly. This blog will explore the diverse ongoing expenses of owning a car to provide insights into the full financial commitment that comes with being a car owner.

Fuel costs

Fuel expenses are a significant amount of the ongoing costs of owning a car. Whether you are driving to work or taking a road trip, petrol is an essential expense. If you purchase a hybrid or electric car, you may find yourself saving some money in the long run. If you go to CarJam, you can estimate the fuel costs for your car on their website.

Warrant of Fitness (WOF)

WOF is another fee that car owners need to consider. This periodic inspection ensures that your vehicle meets the required safety standards to be on the road. To keep your car roadworthy and in compliance with rules, you must budget for this expense regularly.

Vehicle licensing fee (Rego)

In New Zealand, you are not allowed to drive on the NZ road without a registration. So it will be another cost of owning a car. Normally, different types of cars will impact the amount you will have to pay for your vehicle registration, also known as “Rego” in New Zealand. This fee is calculated based on different factors like weight, engine size, and emissions. If you fail to pay for that, you may face fines or penalties. So don’t forget to pay for it and you can check the Rego cost on NZTA’s website to see how much you need to pay.

Road user charge (RUC)

In New Zealand, diesel car owners may be subjected to extra fees – road user charges. This fee is introduced to address the environmental impact of diesel vehicles. You can find additional information on this RUC rates and transaction fees page. If you have a light EV, you will be charged RUC from April 2024. You can get more information here directly!

Car insurance

Car insurance is also an important part of the costs of owning a car, which can help you financially in the event of an accident, theft, or vehicle damage. The cost of car insurance can vary depending on factors such as the value of your car, driving record, age, where you live, the type of coverage you chosen, etc.  Comparing quotes from different insurers can help you find the most suitable one that can match your needs without breaking the bank.

Service and maintenance

Regular servicing and maintenance are essential for keeping your car performing at its best. This includes assessing the braking system, replacing the oil, checking tyre conditions, monitoring fluid levels, and more. Consistently servicing your vehicle is highly recommended and required to ensure top performance. For more information on car repair and maintenance, please see the resources available here!

Car loans repayments

If you buy your vehicle with finance, monthly repayments are another ongoing cost to keep in mind. It’s important to know how car loans work and understand the total expenses involved. This includes loan terms, interest rates, and a few more costs. Knowing these loan details will allow you to make informed financial decisions and stay within your budget. If you would like more details on car loans, feel free to reach out to us. Our experienced brokers will tailor a solution to meet your specific needs.