Car Ownership – What is the True Cost?
In Singapore, especially with the high prices and taxes, if you have your own car, you are perceived to have achieved some form of success in your life. However, before you commit and say “I do” to your new set of wheels, be sure to find out about the true cost and expenses that comes with the title of a car owner.
1. ERP Charges
The Electronic Road Pricing makes driving expensive here, and it may not be worth to drive daily, especially to CBD areas. With the rising fees, fuel costs and high season parking fares, first-time car owners may find it difficult to keep up with the prices that are only progressively accumulated every day without fail. While having your own car means an easier and more convenient mode of transport, are you able to carry on with the costs driving to and fro your destination, seven days a week? Everyone should consider about such daily expenses before committing to a car. One solution to avoid the higher CBD parking charges is to park near an MRT station and take a train instead to the CBD area. There are also car owners who look for free carparks in housing estates and take a bus to the CBD instead.
2. Car Maintenance Costs
Just like how humans need food and rest, cars need their regular maintenance to function. It is at this point, not a surprise that maintenance costs are constantly increasing over the years. Be it old or new, cars need to be frequently serviced to operate properly. Functional checks, repairs, or replacement of car accessories such as tires all add up and is part of one’s financial burdens on the car ownership. It is advisable to budget the average repair costs and to set aside an amount for this purpose to save yourself from surprises.
3. Modification costs
Buying a simple basic does not automatically mean a lower overall cost. Yes, it could have an attractive price at first, but does it come with the features that match you and your requirements , or do you have to further modify it to suit your needs? Eventually, the costs of upgrades and other forms of beautifying the car could snowball up to a larger sum than you initially expected. Car owners tend to splurge on bodykits, entertainment/sound systems, interior trims and exhaust pipes which are all nice to have, but we highly recommend to splurge within your budget.
4. Unexpected Car Insurance Costs
If you recently just got your driving license, you may not be one of those to get good deals on your car insurance. However, not accumulating any demerit points and accidents should help in the long run. That being said, if you unfortunately belong to a certain demographic group that has higher chances of car damages, your insurance rates could be higher. Therefore, do obtain an estimation of your costs before committing to a vehicle because the amount differs for everyone.
5. Road Accidents
Despite how careful we are, we still need to prepare ourselves and be prudent for small accidents on the road. Especially with tighter carparks and larger vehicles, it increases the chances of little mishaps happening in an overcrowded city like Singapore. Nobody wants to have the sides of their cars scrapped or a corner dented, but these costs are unavoidable when the accidents happen. Do factor the chances for such misfortunes as it will easily throw off the budget largely and you have no choice but to foot the bill.
All in all, always review your sums periodically and budget for the various costs of your car ownership and every other minute detail. You will save yourself a lot of surprises and be prepared for all the different possibilities.
