How to calculate the cost of owning a car

Honda City 2009

Most of us would have the desire to buy a new car. The reason? Did not want to go to the workshop every week as the new car is easier to maintain. But most of the car onwers know that the cost of a car is much more than the sticker price in a dealer's lot. Know the cost of owning a car before you buy a new one.

1) Multiply monthly payments by 12 to calculate the total annual cost of your car loan (for example ; RM600X12 months = RM7200)

2) Insurance cost matters.

3) The cost of petrol consumption of a car is very important

4) Cost of maintenance (spare parts) and repair should not be overlooked.

5) Taxes, Registration and license fees can also add a lot on to the annual and intial octs of having a car.

6) If driving in ares that require you to pay parking fees make sure to calculate the costs (for example; RM5X20working days = RM100).

7) Don't forget to take into account the depreciation (decrease of the car value) a car will have. As soon as a car is taken out of a dealer's lot the car will go down in value.

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