I seriously NEED a car now! But looking at my current cash flow, my short term plans and THE COST OF OWNING A CAR, mainly when it is a liability! Now this Article makes all the sense: ¤. The cost of owning a vehicle. A car. Every one wants one, but not every one needs one. A bigger % of us fall in the Want category...and yet we go ahead and buy cars and most times we get ourselves into a money mess.I have owned several cars so far and i have learned a few things about the cost of cars i want to share today. Often times we look at a car and say aaah i only spend 1 tank per month, well depending on the capacity of ur tank it can range from 40L (K33,560.00) to 70L (K58,730.00). this is an assumption of local city driving getting kids to school, church, to the market with the family general issues. But what is the real cost per month? Lets say one owns an average SUV, say an Ipsum (or whatever), that kind of car, the true/ theoretical cost per month would look something like this, Fuel 1 Tank 60L - K50,340.00/month Insurance (say valued at K2.5mil, standard 10% = K250,000.00/yr) - K20,850.00/month Road traffic tax - well minimal (K1,500.00/yr but bare in mind the cost of repairs to get it certified legally) Tires (say one set per 2 yrs @ K40,000 per tire K160,000.00) - K6,700.00/month General service (oils and filters say every 5,000km or 3 months @ K30,000/service) - K8,400.00/month Garage fees (say service times @ say K5,000/ service) - abt K1,700.00/month If we add all the monthly expected cost we would come about to K93,000/month. (factor in incidental repairs that my arise plus battery cost say in 2 yrs life cycle) Now K93,000 does not seem that bad a scenario for a dude who is earning a decent pay in town. But the other side of the story is that a bigger % of us would not afford a car on cash basis or savings, we would borrow from the bank or whatever source. Now lets say for argument sake we borrowed K2.5 mill from whatever say at base rate 36% for 4 yrs, this would translate to about K99,000.00 in monthly payments. Again the misconception becomes aaaah with my paycheck the car would be coasting me only 99pin. WRONG!!!!, in this scenario the car actual cost per month would be K99,000 + K93,000 = K192,000.00. And this is just town driving (not including zikhoswe and shower trips, funeral trips, kwa agogo trips etc etc) While this might look so discouraging, and yet its the reality. My point is lets look rationally at our hard earned incomes before we make a car purchase, a car is a good thing to have...when needed!
Posted on: Mon, 07 Jul 2014 14:28:23 +0000
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