Importance of Car Cost Calculators

You may wonder, why is it important to calculate the true cost of car ownership. The answer is simple - knowing the cost of car ownership can help you choose the right car to purchase and also to keep certain costs to a minimum so as to avoid unnecessary/additional expenses. A high cost of car ownership can affect your financial ability to invest in much-needed life, motor, and health insurance policies and also to set aside money for retirement. By comparing the costs of different makes and models of cars, you can choose one that is within your budget.

How to Save Money on the Costs of Car Ownership?

Here are some tips to help you reduce your cost of car ownership:

1. Opt for fuel-efficient vehicles such as electric or hybrid vehicles rather than going for the petrol or diesel variants that not only consume more fuel but also pollute the environment. The Indian government offers subsidies to consumers who opt for electric cars in an effort to fully transition into all electric vehicles by 2030.
2. Ensure you have a valid Driving Licence to drive a four-wheeler on public roads in India or else you could be penalised for breaking certain laws in the Motor Vehicles Act, 1988.
3. Some auto dealers offer a warranty on your car. You can choose to pay an additional fee to extend the warranty of your car in the case of unexpected mechanical failures.
4. The depreciation rate of a car is highest in the first 2 years. Depreciation is the cost of the wear and tear of your car that reduces it value over the years. The depreciation rates for cars vary with make and model. At the end of 5 years, an average car usually depreciates by approximately 65%. Why is it important to know the depreciation rate or your car? The resale value of your car is calculated by deducting the depreciation cost of your car from its original price.
5. Fuel costs of cars vary depending on mileage and driving habits. You can save up on fuel costs by opting for a fuel-efficient car, going on small drives, and avoiding heavy acceleration.

1. Make a large down payment in order to reduce the overall cost of your car loan.
2. Though second-hand cars are priced lower than new cars, the maintenance cost of used cars is higher. Even if you are opting for a used car, choose one that is not older than 3 years. On the other hand, the depreciation cost of a new car is higher than a used car.
3. Maintain a good credit score and steady income to get a low interest rate car loan.
4. Opt for a valid car insurance policy to get third-party liability cover.

In conclusion, use the car cost calculator to find the true cost of car ownership, compare costs of owning different makes and models of cars, choose a car within your budget, and to reduce the overall cost of car ownership.

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