Car Ownership 101: Is My Car Wasting My Money?
Having your own car, driving around the metro, and even in far-flung areas is a great way to embrace freedom. However, you have to also consider realities. Just how much money do you spend on your car on a monthly, or on a yearly basis? These are questions that you need to ask if you are going to have a car. What most people don’t know is that there are times when they are already wasting so much money on their cars. To give you an idea about the monthly cost of having your own car, here is an infographic that will open your eyes.
Is your car wasting your money? According to a study, a sedan would most likely run around an average of 10,000 kilometers yearly. For this particular distance, you’d most likely spend around P192,300. Of course, this is just a rough estimate. To break it down to smaller numbers, that means around P19.23 per kilometer.
Cost of gas and other expenses vs. PUV Transportation
There are many factors that you want to consider to determine if you are actually losing money in your car. For instance, do you intend to use the car to go to work or to do your usual chores? If yes, you want to compute for the cost of commuting using the PUVs or taxi. Also, you want to compare the fuel cost and other related expenses.
Most likely, you’ll be spending less if you are going to use the car with the entire family. If you are using the family car to bring the kids to school, and your wife to her workplace, then definitely, you are getting the most of your car’s value.
Compare car insurance and repairs
There will be maintenance and repairs necessary in order to keep the car running. If you have an old car, most likely, you’ll end up encountering more problems through the years. Given the inconvenience of having your car repaired every now and then, not to mention, possible accidents which you could encounter on the road, you want to take look closely at how much you are actually spending.
Insurance will be the most likely option if you wish to stay away from unexpected expenses. The good news is that you could now compare car insurance rates via sites like iChoose.ph. However, not every car can get covered by car insurance. The years, market value and the condition of the car will most likely be scrutinized by car insurance companies.
Most likely, you are wasting money on a car that demands a lot of costly repairs. If you experience this in a car, maybe it is time that you decommission your vehicle and finds a newer car.
Car Loan vs. Daily Expenses
If you are earning a P20,000 monthly salary, it might not be a smart idea to purchase a brand new car. Car loans should always be checked with your monthly salary along with day to day expenses. As a rule of thumb, get a car that you could afford.
Spending money on a car may or may not be a practical move. You need to evaluate your situation. These are just some tips on how you can determine if your car is already wasting your money.
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