The cost of owning and running a car has recently hit new levels of unaffordability for many people. The price of fuel and all the extra costs associated with car ownership such as maintenance, insurance, and other expenses, all add up to a significant annual outlay required on your behalf to keep your vehicle on the road.
Not surprisingly, a growing number of people are now contemplating offers available to buy your car that could allow you to cash in on its value and enjoy less expensive but reliable methods of transportation.
If you still need convincing that owning a car is not such a great idea in the current climate here are some of the major downsides to think about.
Can your household budget stand the cost of car ownership?
One of the biggest reasons for selling your car and moving away from ownership would be the high cost of ownership.
It just gets more expensive every year to keep a car. If you work out what each mile you travel in your car is actually costing you it would probably prove to be a real eye-opener. It is not just the cost of fuel, it is the cost of repairs, insurance, taxes, and everything else that all make a dent in your household budget.
Add in the fact that your car is depreciating in value every year and you can soon see that car ownership is something that your annual budget might struggle to justify or afford.
The impact of depreciation
If you buy a property or put money into the stock market you can have realistic expectations that your investments might grow in value over a period of time.
You can’t say the same when you pay for your car.
If you buy a new car it could lose as much as 25% of its value as soon as you drive away from the showroom. On top of that, it will often be worth less each year you own it, and it might also cost you to more in repairs and maintenance as it ages.
The impact of car ownership on the environment
We have all become more aware of the impact of climate change on our lives and there is definitely an environmental cost of car ownership that you have to think about.
The introduction of electric vehicles is trying to address that particular issue. One solution might be to sell your old petrol car and consider improving your carbon footprint by swapping to an electric model.
There is still an environmental cost attached to car usage whichever type of vehicle you own.
Insurance is getting more expensive
The cost of insuring your car is always expensive. You are charged a premium when you are a young or inexperienced driver. Then, despite having a few years under your belt, the cost of insurance rises annually. That means you are always going to have to take a chunk out of your annual household budget to pay for car insurance.
The additional cost of using your car
There are now more additional charges for things like parking your car, driving along major highways, or taking your car into a city.
These have to be factored into the overall cost of car ownership.
Once you put all of these costs together your family budget will most likely have to allocate an eye-watering sum of money each year if you want to continue owning a car.
Isn’t it time you considered the true cost of motoring and might it be worth cashing in if you can get a good price for your vehicle?
