Hidden Costs of Owning a Car

If you are considering purchasing a car, you might be wondering what the operating costs of owning a vehicle are.

Hidden Costs of Owning a Car
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With a landscape as diverse and vast as Australia’s, cars are one of the best and more reliable ways to get around; whether you’re making the essential daily work commute or taking a scenic road trip across the country with family or friends; however, the costs of owning a car can mount.

If you are considering purchasing a car, you might be wondering what the operating costs of owning a vehicle are. Sadly, the costs of actually owning a car don’t stop once you’ve bought the vehicle, and many hidden charges might cause quite a blow to your budget.

Costs of Owning a Car – Our Breakdown

Inspection Fees

Even before your certification expires, you must factor inspection costs into your budget. These costs will vary depending on the vehicle you are driving; but can range from $40 for smaller cars to as much as $102 for larger models. The cost of inspections (on average) in Australia range from $230-$351.

Loan Interest

The average loan Australians are taking out is $31,738.40 for their newest vehicle. So, let’s say you are thinking of making weekly repayments of $46.24 over a period of 5 years with a 7.5% interest rate. By the time this has all been paid off, $2,022.77 of interest will also have been lost. The car you made this sacrifice for may not tailor to your long-term needs; due to family expansion, relocation, changing lifestyle and so on. Essentially, you could more than likely lose out on your selection.

Depreciation Value

Another hidden blow to your finances is the investment you will be making in the vehicle. It is no secret that the value of your car can depreciate over time,with some car values dropping at a much faster pace than others.

So, when you’ve outgrown your vehicle and found that it no longer suits your needs, you may have lost 60% of its initial value. This, a lot of the time, is unavoidable, but the effects of depreciation can be softened through; you guessed it, maintenance, and servicing, making it a very inconvenient (and inevitable) dilemma.

Car Insurance

Car insurance is one of the more costly factors when considering the operating costs of owning a vehicle. Although insurance in Australia is optional, if you have taken out a loan, it may be a condition of approval. Comprehensive car insurance covers damages caused by insured incidents such as car accidents, theft, and storm damage.

According to the AAA, the average annual cost for comprehensive insurance by household in Australia is $1,340 (excluding additional fees). These premiums are tailored to each driver and consider; age, the car model, and even the colour of the car itself.

The Most Important Cost

It can often be stressful when calculating the costs of car ownership. With very few financial and personal benefits, it is so easy to forget the mental costs of the commitment of permanently owning a vehicle and the toll of financial strain. With all of these pieces considered, the operating costs of owning a vehicle can average at around $15,000 per year, which is quite daunting.

However, after considering all of the hidden operational costs that have been listed and how such small expenses can turn into rather large ones, it can be extremely easy to overlook them. There is a hassle-free alternative that avoids the costs of owning a car while keeping up with an unpredictable, changing world. ECar Subscrption, part of East Coast Rentals, is a modern all-inclusive car rental subscription service that works for and around you; choose, customise and collect.

Consider Your Lifestyle

Like any subscription service, it’s simple; select from an extensive range of subscription cars that will suit your lifestyle and work for your budget; from small compact city-savvy hatchbacks to full-size family SUV hybrids, eCar Subscription provides the perfect vehicle to complement your lifestyle and your changing needs on the road.

This fixed weekly, fortnightly, or monthly payment will also include any of the otherwise hidden costs of purchasing a car – but delivered upfront. Vehicle insurance, roadside assistance, and comprehensive warranty are all part of the subscription (all you need is fuel!).

How Much Can You Save with eCar Subscription?

With an eCar Subscription, you can compare the overwhelming costs of operating a vehicle to our affordable weekly fees, which cover all hidden expenses associated with the costs of owning a car – this can be done throughour dedicated car ownership cost calculator. Here at eCar subscription, we provide the same ease with our corporate subscription model, a business car subscription tailored to your company’s unique requirements. At the end of the day, we’re here for you!

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