Additional costs to consider when buying a car

Additional costs to consider when buying a car

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You need to plan for all the additional costs that come with buying a car

When it comes to buying a car, most people are usually prepared for a big investment. Whether you’ve saved up a sizeable deposit, or you’re relying primarily on a car loan to help you cover the costs, it’s always good to consider exactly how much buying a car could cost you.

At Positive Lending Solutions, we always ensure that we help you prepare for not only the costs of buying a car but also the additional costs. We want to get customers on the road as quickly as possible, while always making sure that you aren’t stretched financially and can afford all the running costs connected to driving a car.

Find out how we can help you with car loans.

The 5 main additional car costs you should consider

It’s a huge weight off your shoulders once you’ve arranged your car loan with a company that you trust. At Positive Lending Solutions, we always help you to know how much to budget for your monthly repayments and will make sure that you’re aware of what the interest rate is on your loan – and whether this is fixed or variable.

Unfortunately though, the costs don’t stop there. You’ll need to make sure that you have extra money available in your budget to run your car efficiently, legally and safely.

Some of the other key car costs include:

1. Fuel

It’s an essential – and you won’t be going anywhere without it. Think carefully about fuel costs when you’re looking at car loans and deciding which car to buy. Buying a car that is economical with fuel or even an Electric car could save you thousands of dollars over the car’s lifespan compared to a car with high fuel consumption. Factor in at least $50 per month for fuel depending on the amount you use your vehicle.

2. Insurance

Generally, the cost of car insurance for an older vehicle (over 5 years old) will be significantly less than for a brand new car – so the car cost of insurance will vary depending on what car you choose to get a car loan for. You should budget anywhere from $500 to $1,110 for car insurance after getting your car loan.

3. Roadworthy certificate

In some Australian states, cars need to pass an annual roadworthy test which covers the basic elements of a car such as wheels and tyres. If you are buying a used car, the seller is not required to provide this, so you’ll need to budget this additional car cost as well. The cost of an inspection and certificate depend on the vehicle itself, but you’ll generally expect to pay anywhere from $50 to $150.

4. Registration

The ‘rego’ is a document you’re required to have to identify your vehicle, and this must be in the name of the owner of the vehicle – so you’ll need to transfer it if you’re buying a used car. When buying a used car, you as a buyer are expected to pay the transfer fee for rego as well as the taxes involved. You generally have to do the admin for rego in person for factor in your time to the car cost on this one.

5. Roadside Assistance

You’re out enjoying the Australian landscape and driving your car for miles at a time. But what happens when things go wrong? Whether it’s a fault with your engine or a flat tyre, having roadside assistance is absolutely essential when it comes to owning a car. Don’t let yourself get stranded. It may seem like simply another car cost, but it could really save you in your hour of need!

Let us help you get sorted

At Positive Lending Solutions, we don’t simply sell you a car loan and wave you on your way. We want to make the entire loan process is as positive and efficient as possible – and that means setting you up for a successful journey.

Speak to us if you’re unsure about how much to spend on your car loan and how to balance this with the amount you’re likely to spend with ongoing car costs. We have decades of experience in the car loan industry and are always here to help.

For expert advice on car loans and additional costs, talk to us.

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