Are You Spending More on Your Car Than You Think?

There are many advantages of owning a car. It provides a reliable mode of transport and, as a big investment, a source of pride for the car owners. Besides saving for the car purchase, there are many other factors to consider when making this huge investment. 

The amount car owners spend to keep their vehicles on the road depends on the type of car, which is why it is hard to keep tabs on the exact costs. Most of these rates fluctuate, like fuel, insurance, and car tax. Some car owners will also need an extended car warranty for vehicle repairs. 

Although these car warranties are expensive, ensure you do proper research on an extended warranty for cars over 100k miles. Different providers have various plans to cater to all your car needs. Before signing the papers, consider reading your car insurance policy to ensure everything you want is covered. 

What Is the Cost of Running Your Car?

Most car owners only have a vague idea of how much their car costs because they don’t keep tabs on their spending. Once you budget for fuel, car insurance and maintenance, and any other minor costs, you will know how much you spend. 

Why Your Car Maintenance Is High

1. Insurance

The cost of your car’s insurance depends on different factors, including the car’s model and age, your driving record, how frequently you drive your vehicle, and your location. Your age and gender will also determine how much premiums you will pay. 

Your car insurance will be cheaper if you have a good driving record, with minimal or no accidents. But new drivers pay more premiums that decrease as you accumulate experience. If you use your car frequently, you will likely spend more on insurance because the vehicle has a higher chance of accidents. 

2. Servicing and Repairs

Your car’s servicing and repair costs depend on factors like age and the vehicle’s general condition. If its condition is bad and has more malfunctioning parts, it will cost you more to maintain. This is because you make many trips to the garage for repairs. 

If you have a trustworthy garage, the mechanic will advise if your car is worth keeping or if you can sell it and buy another one. If you ask, your friends can always be good referrals to a good garage. 

3. Fuel Costs

How much fuel your car spends depends on the car model and the fuel price of your area. Note that fuel prices fluctuate, so the costs might not be constant. When budgeting for fuel, consider the future rise in costs. 

4. Extended Car Warranty

Although an extended car warranty is optional, most car owners prefer to have it. It covers the price of significant repairs and replacement for a certain number of miles after the manufacturer warranty expires. 

Consider buying extended car warranties from reputable companies, and choose the most suitable plans that cover vehicles with over 100k miles. You can check plans covering the engine, electrical, braking, and air conditioning repairs. 

While car owners should consider budgeting for the cost of running the car, it is hard to keep track. Fuel prices and service fees fluctuate, and insurance costs depend on the insurance company you buy from. So, keep these costs in mind when purchasing a new car.