The Real Cost of Owning a Car 

Car ownership stacks up – so it’s even more important to make sure you get the best deal on quality car products and services this year.

Here are the most important parts of car ownership and running costs, and how you can save:

Depreciation

Every vehicle – big and small – is a rapidly depreciating asset. But there are steps from the outset of car ownership that help to greatly minimise how much your car depreciates.

Get to know the Make and Model of your Vehicle

Once you have your preferred vehicle narrowed down to a few different options based on your lifestyle and preferences, it’s time to start thinking about the depreciation rates.

A car’s resale value is heavily influenced by its reputation, so starting out with a make and model with a record of reliability, safety and quality is an important first step.

If buying from a dealership, always keep an eye out for sales and drive-away deals. The more you can save on the initial price of your car, the less you have to lose as your car depreciates. 

Fuel Economy

Petrol prices are your wallet’s worst enemy – factoring in your vehicle’s fuel economy is an essential consideration for your own budget and its projected resale value.

There are various electric, hybrid and diesel or petrol-run vehicles to choose from to meet your lifestyle needs and preferences. The most fuel efficient cars of 2014 include:

  • Mitsubishi i-Miev
  • Nissan Leaf
  • Toyota Camry Hybrid
  • Peugeot 2008 HDi

Whether you’re looking for a zippy city car or a family-friendly four wheel drive, be sure to look out for the most fuel efficient vehicles in each class – the money you’ll save will be well worth the research!

Keeping a Resale in Mind

No matter how much you love your new – or used – car, you won’t have it forever. Remembering that you will probably have to sell or trade it in eventually will help you keep your car in tip-top shape. Here are some steps that will increase your car’s value at resale:

  • Having regular services and keeping a record of it.
  • If affordable, have any minor dents or scratches repaired before selling. Make sure to weigh up whether the repairs or the reduction in your car’s value will cost you more.
  • If available, always keep your car in a garage. Less wear and tear from the weather equals a better-maintained vehicle.
  • Keep your car washed and polished regularly. Also to be sure the interior is maintained.
  • Choose a private sale. It will take more time and effort on your part, but you will almost always get a better price than at a dealership.

Car Insurance

Beyond your green slip, having the right car insurance for your budget and circumstances is one of the defining factors of the cost of owning and running your car.

It’s tempting to choose the cheaper option, but you may end up paying for your lower premium with a higher excess or out-of-pocket cost should you run into an accident.

Comprehensive car insurance can be cheaper than you may expect, while also providing you with the cover you need should the unexpected happen. In fact, a comprehensive car insurance policy can be as less than $2 per day – probably less than you spend on coffee!

Car ownership and running costs don’t have to break the bank – follow these tips and start saving on your car.