The costs of running a car usually take up a significant part of a household budget. If you have more than one car in your household, consider whether you could get by with just one car rather than 2 cars.
Do a trial and see whether you can get by without using your car. The decision doesn’t have to be final. Just give it a go and see what happens!
So how much money could you actually save by not having a car. Depending on the type of car you have, this could amount to shaving off several thousand dollars every year.
Here are some of the areas where you will save money if choose not to have a car.
Purchase costs
- Purchase costs in buying a car
- Hire purchase costs and borrowing expenses if you took out a loan for your car
- Opportunity cost of buying a car
Annual maintenance and repair costs
- Car servicing
- Maintenance
- Replacement of car parts eg tyres.
- Unexpected repair costs
Operating costs of running your car
- Fuel Costs – petrol, diesel etc.
- Car Wash
- Insurance
- Driver’s licence
- Third party insurance
- Comprehensive insurance
- Vehicle registration
- Auto car membership
- Car break down service membership
- Depreciation – loss in value of your car through wear and tear
Other Costs
- Fuel conversion of vehicle eg to gas
Now might be the time to rethink the purchase or replacement of your next car. Save Money Hound reckons you could save lots of money by either not having a car or downsizing the number of cars you have in your household.
Other Save Money Hound Articles
Throw away the Car and save money Part 1
How to save money for a car Part 1
How to save money for a car Part 2
