The many hidden costs of owning a car | Cartrack

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The many hidden costs of owning a car

11 June 2020

Your car is probably one of the biggest life choices you’ll make, but do you know just how much you’ll actually spend on that choice?

In addition to the purchase price, licensing and fuel, there are a myriad of other costs that you will need to take into account. And, once you have done so, ask yourself just one question: after all you’ve spent on your car, do you really think you could replace it for its total worth if it were stolen or hijacked?

How much will your car really cost?

Let’s assume you’ve bought a car for R200 000 at an interest rate of 11,5%, you will pay R4 400 a month in repayments for five years. This means you’ll actually be paying a total of R264 000 just for the car.

Now, let’s break down your yearly budget*

Licence fees (if it’s between 1 750kg and 2 000kg)  R 900
Major service R 4000
Minor service (R2 000 x 3) R 6000
Brakes R 2000
Oil R 500
Fuel (R400/tank, filled weekly) R 19 200
Insurance premiums (R600 x 12) R 7 200
Average repayment cost (R264 000 ÷ 5) R 52 800
Total Annual cost R 92 600

The above is what your car could cost you in Year 1. But let’s assume in Year 2, that a few things go wrong. You have to replace the cam belt and a bumper bashing saw you having to claim from insurance, while your teenage son decided to show his plus 1 what a “Burn Out” was.

So, let’s factor these incidentals into Year 2’s budget*:

Belt replacement                                                     R 10 000
Insurance excess R 5 000
New tyres R 2 500
Total R 17 500

And voila, suddenly in Year 2, your car has cost you well over R100 000.

If you assume that you have no issues at all through the 5-year repayment period, and will continue to pay only R92 600 a year, then your car will in fact cost R463 000. That’s a massive amount to have to lose out on if your car is stolen or hijacked.

However, if you put a tracking device into your car from the get-go, you can rest assured that your investment can be found and returned to you. With the superior recovery and telematics services that Cartrack offers, you’ll have the added peace of mind that comes with knowing you’ve got the best recovery services in South Africa on your side as well as a recovery warranty of up to R150 000. So, if Cartrack is unable to recover your car, you’ll get the book value paid out to you (Terms & Conditions apply).

In addition, you’ll also get a world-class app that puts all your vehicle information at your fingertips. Cartrack’s mobile app can tell you where your car is, how fast it’s been travelling, the habits of the driver and how much fuel your car’s been using. You can also use the app to keep a digital eye on your car, call for emergency roadside, medical or legal assistance, get unbeatable prices on new tyres from select providers and get the best insurance quotes ever. It’s complete control of all your vehicle mobility needs and 24/7 #PeaceOfMind.

Get the Cartrack advantage today, and click here for one of sales people to contact you.

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