A Car’s Actual Cost

A car is a liability in business terms. Many people just take a look at the dealer's price tag and assume that that is the total cost of buying the car. This, however, is not true since many hidden costs come with purchasing a vehicle. These include; the interest paid if the vehicle was purchased on loan or instalments on top of asking price.

The car needs insurance for it to be roadworthy. Therefore insurance premiums are supposed to be paid. Depending on the area or country, there also some regulatory fees you are required to pay.

A car also requires fuel. Fuel costs are determined by the capacity of your engine which dictates consumption and also depends on your driving habits.

Maintenance and repair cost a hefty amount over time. This is another cost that will add up to the final cost of purchasing a car. It is therefore vital to have all the costs factored into the car budget to avoid any financial problems later.

Categories: Social
Tags: cost to own
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