Buying a new car during Diwali can be tempting, especially with dealerships offering festive discounts, attractive finance schemes and other incentives. But while buyers often focus on the down payment and monthly EMI before making a decision, the expenses do not end once the car is delivered.
Take the example of an SUV priced at Rs 12 lakh. Apart from the loan instalments, owners have to account for several other expenses that come with running and maintaining a vehicle. Here are five costs to factor into your budget before buying a new car.
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Fuel Costs Add Up Faster Than Expected
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The daily commute to the office, weekend drives, and unplanned visits to the market all consume fuel. A car that provides decent mileage may turn out to be expensive to operate if your daily driving distance is high. Calculate the fuel expenses for the month before arriving at an EMI amount.
Insurance Renewal is Not A Small Expense
Although your first year insurance is covered within the on-road price, your renewal premium will arrive sooner than you expect. The cost of the insurance varies depending on the type of car you own.
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Regular Servicing and Maintenance
A free service does not necessarily mean that all services are free. The consumables, wheel alignment, balancing, and some replacement parts can incur additional costs. Once the free service expires, then maintenance becomes your own concern.
Parking and Toll Charges
Without any designated parking area in your apartment building, parking rental may become an additional cost. Coupled with highway tolls, parking charges at work, and parking rental on occasion, the total cost may shock you.
Repairs, Tyres And Unexpected Replacements
A flat tyre, damaged bumper, or even a dead battery can dent your monthly budget. In addition, tyres will have to be replaced at some point, based on how long they last.
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A new car is an exciting Diwali purchase, but ownership costs deserve equal attention. Before celebrating that new set of keys, make sure your budget covers more than just the EMI. A car should make life easier, not stretch your finances every month.
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