What Are The Advantages of Owning a Car?
In today’s modern world, there are many advantages to owning a vehicle. Cars provide individuals and families with a variety of benefits ranging from convenience to mobility to economic benefits.
The lifestyle advantages of owning a car are significant. For example, owning a vehicle allows for:
- Freedom and Flexibility: While there are many advantages to public transportation, it runs on a predetermined schedule. When you take public transit, you are at the mercy of the schedule and being late is not an option. The freedom and flexibility of owning a vehicle allows you to depart for your destination at a time that is convenient for you. In addition, should plans change, a vehicle allows far more flexibility for ways to adjust.
- Time Efficiency: On a similar note,, the time taken to commute to public transit can add a significant amount of time to your commute. For example, if you take the train to work, you must also factor in the time it takes you to walk to the train station, wait for the train, and then walk from your destination station to your place of work. Depending on how often your choice of public transit runs, these additions can add up quickly!
- Comfort and Privacy: When you have your own vehicle, you are in control of the atmosphere. As the driver you can control the vehicle’s temperature, music, noise-level and if you need to stop. In addition, you can also use your commute time to make any necessary phone calls (with a hands-free device!) or catch up with friends and family.
- Peace of Mind: In the case of an emergency, a car provides a way for you to travel to somewhere that you need to as quickly as possible.
In addition, owning a vehicle can also serve as a huge advantage to those who have young children or who have elderly relatives who live with them.
While these are all significant benefits, it is also important to weigh the cost. There are many hidden costs of car ownership. However, through education and preparation, you can best position yourself to tackle all of these costs!
What Are the Unexpected Costs of Car Ownership?
The average cost of a new vehicle is around $48,000. In addition to this upfront cost, there are numerous unexpected costs that come along with car ownership. Through careful research, you can learn about these costs and prepare to tackle them. Some of the unexpected costs of car ownership include:
- Depreciation: Car depreciation is the rate at which your vehicle loses its value over time. Depreciation is not the same for every vehicle. For example, newer cars tend to lose their value more quickly. The specific model of a car can also greatly impact the depreciation, and depreciation is a necessary factor to consider when determining equity of your vehicle. LoanMart can help you figure out your current vehicle equity.
- Maintenance: While the cost of maintenance can depend on many different factors, the average car costs around $900 per year to maintain. Maintenance includes costs such as oil changes, new tires and breaks. With older vehicles, maintenance costs often pop up unexpectedly and can be significant.
- Fuel: While fuel costs can vary by state and location, the current national average for gas is $3.71 per gallon for mid-grade fuel. While a vehicle can make your commute more convenient and comfortable, the cost of gas can add up quickly -especially if you have a long commute.
- Insurance Premiums: Driving without car insurance is illegal in nearly every state. The cost of insurance -while sometimes pricey- is a mandatory expense of owning a vehicle. There are different factors that play a role in your insurance premiums, such as your driving record, credit score, age, gender and location.
- Tires: While tires were previously mentioned under maintenance, these can be considered a separate category due to their importance. The quality of your tires are incredibly important for the control and tread of your car. Letting your tires go is a slippery slope for other areas of your car wearing down. Tires are an incredibly important part of your vehicle’s safety, and it is vital to maintain your tires.
- Registration and Taxes: Many people tend to forget the costs of registration and licensing. There are yearly registration fees and vehicle taxes that are mandatory for your vehicle. While these costs vary from state to state, they are unavoidable costs.
- Parking: Depending on where you live, parking may be an incredibly important cost to consider with vehicle ownership. Particularly if you live in a city, you will need to consider the cost of a parking permit for your street or the cost of renting a parking spot. While this cost varies from city to city, this can be a significant expense. New York City is considered one of the most expensive cities to park in, with some monthly parking rates hovering around a staggering $443.51 per month.
How Can I Reduce the Amount I Spend on My Car?
While the costs of car ownership can be significant, they are not meant to deter you from owning a vehicle! Rather, through careful education and research you can better prepare yourself to tackle these costs upfront.
If you are looking for some tips and tricks to reduce the amount you spend on your car, consider:
- Purchasing a fuel efficient vehicle
- Buying a used car
- Avoiding tollways
- Regularly maintenance your vehicle
Purchasing a fuel efficient car can save you a significant amount of money over time -especially if you have a hefty commute! Use this fuel efficiency calculator to see just how much money you can save over time.
In addition, buying a used car can also save you money on upfront costs. With a used vehicle, the depreciation has already taken place, so you won’t be paying a high sticker price. You may also be able to negotiate the price of a used vehicle far more than a new car. On top of all of this, you can expect to pay a lower insurance premium for a used vehicle.
If you use your vehicle to commute to work, consider reevaluating your route. Tolls can add up, and planning your morning commute around any tolls can help you to save a little extra money!
Finally, while the cost of maintenance and regular oil changes on your vehicle can feel tiresome, regularly maintaining your car is one of the best ways to keep your vehicle roadworthy. Not only does regular maintenance keep your vehicle safe, it also helps you to avoid expensive repairs down the road. Regular oil changes, while seemingly simple, are a great way to keep your car up and running. AAA suggests getting an oil change every 5,000 to 7,500 miles. Ignoring a maintenance issue will only make the issue snowball, and can even lead to unfixable problems with your car.
By implementing these strategies, you can help to reduce the amount of money that you spend on a car while also having the convenience of your own vehicle!
