By Terry Platirahos
Cars are a must have in today’s day and age. However they do come with many expenses from choosing the desired car to registration fees, insurance, CTP, servicing and increased petrol prices. All these factors above mean a hefty price however there are ways to lower the cost for some of the factors listed above.
Registration
All cars you intend to drive must be registered and with anything else in life it isn’t free. Registration fees usually are around $500- $850 but this price can be lower depending on what state you live in and the risk assessment in the state you live in.
For example the high risk Melbourne metro away will cost you north of $850 but in more rural areas in Victoria it’s $100 less. So you can make a judgment if you want to move areas for a slightly cheaper registration fee.
Insurance
Car insurance is almost a must as driving a car can be very dangerous as you are driving a one ton vehicle at high speeds with a lot of uncertainty of the drivers surrounding you and how stable they may be. Now if you wish to opt out of car insurance you are putting yourself at risk of not being able to receive coverage if your car does get damaged.
However car insurance mainly varies from $1,000- $2,000 depending on your provider and what outcomes you choose to have in your car insurance. Not to add CTPcoverage which will cost you another $400 for extra coverage of your car. Which totals between $1,400-$2,400 annually.
Servicing
Owning a car means you will need to service it annually which at base costs roughly $700 at base with two different inspections and two combined prices of around $700. This can increase if the company finds any issues with your car than it can be much more expensive to repair this issue. Newer cars will come with less identifiable issues as to be expected. You can lower the chances of your car developing issues if you find alternatives to driving your car less, for example walking, jogging or running to places near you which will also improve your health and wellbeing. Finding alternatives will often reduce the wear and tear of your car lowering the chances of any mechanical issues of your car arising further saving you money. Nonetheless cars will inevitably come with issues over time.
Petrol
Petrol prices, a recent topic in today’s media. Whilst prices are rising due to the demand of oil is at an all time high. This demand means there’s less supply meaning a price rise in the petrol market which results in a much more increased amount of money reduced from bank accounts for civilians. With the increased petrol prices it will cost around $1,000 per year on average.
The price may be higher or lower depending on how often and what distances you travel. Though you can save money depending on the day, time and petrol station you decide to refill your car with. As prices are cheaper or more expensive depending on the factors listed above. So you will need to wait and choose to see a slightly lower petrol expenses.
Conclusion/total cost
Owning a car is expensive per the reasons stated above. Annually you’re looking at approximately $3,600- $5,000 annually. These prices can be much higher depending on other accidents, or issues with a car part. However the positives of owning a car marginally outweighs the negatives of a car even due all the annual fees you have to pay.