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Buying a Car
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Costs
So you want to buy a car... but have you thought about all the costs and responsibilities it will present you with?
Read through this online tutorial on the costs and considerations you need to accept when buying your first car.
Let’s start with the basics.
Firstly, you need to know how much money you want to spend on the car. You must consider:
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Up front costs
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Optional extras
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On-going costs
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Running costs
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Loan repayments
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Parking costs
Firstly, let’s have a look at up-front costs. Think the following points carefully:
Are you able to afford the total purchase price of the car? This includes the price of the car itself, plus the extras such as stamp duty, insurance, registration and transfer fees.
You must also consider:
Optional extras – These include CD players, air-conditioning, DVD players, GPS.
On-going costs. These are usually about $90 a week – annual insurance, annual registration
Running costs (these include petrol, tolls, and maintenance) are about $65-$70 a week.
Loan repayments- if you have a loan to buy the car, the depending on the cost of the car, you usually have to repay over $15 a week over a period of five years.
And parking costs, such as parking stations and meters.
Always look around for a good loan if you need to borrow money to help cover these costs. It is unwise to rely on a dealer’s finance or insurance. You should check with an independent financial institution because you could save lots of money.
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