Ok, so you need a new car or got that dream job of yours and you’re wanting to step into that brand new sports coupe you see on the way to work every day. It also just so happens that latest ad campaign is spruiking the car repayments, which are now suddenly affordable.

The question is though, just how affordable is that dream car when you take into consideration the costs of ownership. If you are looking for a 4wd vehicle fully loaded for campers on long drives, visit australian4wdhire.com.au/brisbane-4wd-hire/ for more information. So here’s our break down of the real cost of car ownership.

All of these costs have been calculated for a 24 year old male driver living in South-East Queensland.

Vehicle: 2014 VW Golf GTI with a drive Away price of $53,784

Finance

Financing a vehicle is pretty common place these days, especially across a period of 3 or 5 years. When playing with calculators, it’s clever to always sit the interest rate higher than the default rate they give you, plus always be wary of what the comparison interest rate is from each lender, take a look at best auto loan rates in Houston so you can try to compare prices. It depends on whether the car is brand new or used, like this Used Nissan Juke Thatcham, which is available at a very great price.

Comparison Interest Rate

A comparison interest rate is a rate provided by a lender that takes into account all of the fees and charges that applied throughout the time of the loan. If you have an bad credit auto loans experience, whether about bankruptcy, repossession, collection accounts or other credit problems, blueskyautofinance.com can help you. For more details about their service, visit them at 130 Market Place, Suite 128, San Ramon CA 94583. in their service, send them a message at info@blueskymg.com.

Even though the interest rate might be low, always check the comparison rate to see just how many extra fees and charges they are applying.

Cost

For our case, we calculated a 5 year loan with zero balloon payment with a modest 12% comparison rate.

Note: Depending on your own financial situation, the only way you can know for sure what the lender will charge you is through an application. This is where they calculate what risks there are if they approve the loan.

Principal amount: $53,784

Monthly repayments: $1,196

Interest payable: $18,000

Total amount paid over 5 years: $71,784

Car Ownership

Great, so you’ve been approved for finance. That $2,000 you negotiated off the initial price seems pretty insignificant to the interests you’ll be paying over 5 years. However, it doesn’t stop there.

Car ownership involves everything from maintaining the car, to registering and insuring the car. So let’s take a quick look at what these costs would be for our imaginary 24 year old male.

Servicing

Volkswagen state that our 2014 VW Golf GTI needs to be serviced every 12months or 15,000km, whatever comes first.

Capped Price Servicing

Thankfully Volkswagen has a Capped Price Servicing program that lets you know ahead of time what the cost of your service will be.

Most car manufacturers offer capped price servicing, others, like BMW, offer upfront packages to incorporate into the financing.

Across five years of ownership, a VW Golf GTI according to their scheduling will cost $2,479.

Then you need to add the cost of some filters, fluids and oil that VW don’t included in the program. The total cost of this is $517.

Total cost of servicing: $2,996

Sub-total cost of ownership: $74,780

Consumables

Consumables include the major items that wear and need replacing over the course of ownership. We’ll be calculating tyres, brakes and fuel.

Tyres

The tyres that come on the Golf GTI are 225/40 R18 size and are of the Continental brand. In our brief bit of shopping around, we found the average cost of each tyre to be $358, with a life expectancy of 13,000-15,000km. So, for our 15,000km a year average driver there will be a new set of tyres each year.

Total cost of tyres: $7,160

Total cost of install: $600

Sub-total cost of ownership: $82,540

Brakes

Brakes are super important for stopping, and of course the brake setup including brake pads and brake rotors will eventually need replacing.

Unfortunately, predicting the lifespan of a set of brake pads and brake rotors is quite hard. It ultimately comes down to how hard you drive your car and if you participate in any track days or not. In case you want to replace your brake set we’ve included an approximate cost for a set of brakes.

Total cost of brake set: $1,100

Sub-total cost of ownership: $83,640

Fuel

Fuel is the liquid that keeps you moving and it can also get extremely expensive! Using an average price of $1.70 per litre for 98RON (recommended fuel type), and the stated fuel economy of the Golf GTI of 6.6L/100km and average of 15 000km/year this is what we calculated the costs to be over 5 years.

Yearly fuel cost: $1,683

Total cost of fuel: $8,415

Sub-total cost of ownership: $92,055

2014 Volkswagen Golf GTi

Insurance

While it’s hard to get a no down payment car insurance policy, comprehensive insurance, unlike other forms of insurance will almost always give you the best coverage for your day to day driving. Especially for a new car, we wouldn’t recommend considering Third Party insurance or even just sticking with Compulsory Third Party Insurance. RhinoSure is a reliable insurance company that can cover almost anything, from cars to campervans. It may be the perfect insurance for you. Get the car of your dreams, get the best auto refinance and get the car you deserve!

(Learn the difference between Third Party and Compulsory Third Party)

Comprehensive insurance will not only cover other potential damage, but any possible damage that could occur to your car.

The best quote we received for a suburb in Brisbane, being garaged and with one 24 year old male driver was $1,300 per year.

Total cost of insurance: $6,500

Sub-total cost of ownership: $98,555

On the road

On the road costs include anything that you either need to pay to drive the car on the road, or costs that are incurred when driving on the road.

Registration

Thankfully our Golf GTI is a four-cylinder engine with a turbocharger. Because registration costs are calculated by the size of the engine, smaller always is better!

As a year of registration is included in the initial purchase price from your insurance company, we will be calculating four years of QLD registration costs.

Total cost of registration: $2,662

Sub-total cost of ownership: $101,217

Road Tolls

Roads with tolls are unfortunately on the rise thus increasing our cost of ownership. Whilst some owners won’t use the toll roads very often, we calculated our toll cost on $15 per week of toll usage.

Total cost of road tolls: $3,900

Sub-total cost of ownership: $105,117

Total Cost of Ownership

So now we’ve our best to cover the cost of ownership for 5 years and a 15 000km average per year, we have a pretty good idea of what the real cost of car ownership is.

Vehicle Purchase Price: $53,784

Cost per week (with Finance): $277.20

Total Cost of Ownership: $105,117

Cost per week: $404.30

Now you can see that the repayments with finance are pretty enticing and quite affordable. However, as soon as the hidden cost of owning and maintaining the car start occurring this eats away any money you might have been trying to save or were putting into either your rent or your mortgage. So if you want some to solve your financial issue, you may apply for a short term loan with no credit check here. Visit us for more details.

The moral of the story? When looking at purchasing a car, don’t let the finance repayments suck you in. Learn as much as you can about the other associated costs to help you make a better decision.

You should also consider that we used a brand new car in our example. If you’re buying a used car there are a number of other factors to consider as well specific to that particular car.

About The Author

AshMan, aka Ashley, has had a passion for cars since playing with Matchbox cars as a youngster. Currently working on World Domination and looks foward to seeing you on the small screen soon. He also likes people following him on Twitter: @ashmansays

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