Car Finances – Adding up the costs of running a car

Having a car can be a great way to get around and can give you that extra freedom if you want to get away for a weekend every now and then. Although cars provide great freedom, easy mobility and often more job opportunities there are a number of expenses that come with owning a car that many people forget about. So if you are purchasing your first, or maybe second, third or even fourth car, pay attention to the additional expenses and always stick to your set budget.

Obviously with cars the biggest expense is the car itself. The cost of a car varies tremendously from a few hundred for a car that’s barely road legal to thousands for a brand new vehicle. If you are purchasing your first car it makes sense to aim somewhere in the middle, for a reasonably new, reliable car that you can learn to drive in.

Of course once you get in the car, you’re going to need petrol or diesel to get around. Regardless of where you live these days, fuel prices are on the rise and running a car isn’t cheap. While there are newer cars that run on more sustainable powers such as battery or hydro, these are relatively new concepts and so finding a car at a reasonable price isn’t going to be easy. Be aware that every garage sets their own fuel prices and so it’s worth driving around, monitoring the signs and getting to know exactly which ones provide the best deals.

Car insurance is another cost that should be factored into the cost own ownership. In most countries, particularly in the western world, car insurance is a necessity. There are many different types of car insurance policies from those that simply cover you against accidents you may cause, to those with varying types of medical cover and so on. Be sure to shop around for the best car insurance policies and ask friends and families who drive for their own advice and experiences.

Owning a car can be expensive and although savings can be made at every cost, the most important thing is to realize that these costs will crop up and to make sure you have the budget to cover all of them. On the plus side, owning a car will give you the freedom and mobility to travel around without relying on public transport or friends with cars. Owning a car can also provide you with more job opportunities as many jobs require you to be able to travel as part of your work.

So while there are many costs involved in owning a car, there are many positives as well, and as long as you realize this before buying a car, you will be able to appreciate the joy of owning your own car.

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