Owning a car offers freedom, but it also comes with ongoing costs that can quickly add up. From the initial purchase to routine maintenance and repairs, understanding the financial commitment is key to managing a vehicle efficiently. Raymond Anthony Quisumbing, Registered Financial Planner, emphasizes, “Knowing the costs associated with owning a car can help you make smarter decisions when it comes to maintaining your vehicle without breaking the bank.”
Quisumbing breaks down the common expenses every car owner faces, such as annual registration fees, car insurance premiums, and routine maintenance. For example, a yearly registration might set you back P5,000 to P6,000, while car insurance can range from P8,000 to P32,000 depending on the model. These costs can quickly pile up, making it essential to budget accordingly. “Do not buy a vehicle if you cannot really afford the monthly amortizations plus regular maintenance,” Quisumbing advises.
For ongoing costs, Quisumbing suggests staying proactive with regular check-ups and addressing minor issues before they become major problems. “Ignoring small repairs, like squealing brakes, could lead to bigger issues, such as a damaged rotor disc, or worse, a fatal accident,” he warns. By maintaining a solid schedule for oil changes, brake inspections, and tire rotations, you can avoid more expensive repairs in the future.
When it comes to choosing a vehicle, Quisumbing advises making a purchase that fits your needs, not just your desires. “If owning a car supports your career, family goals, or lifestyle, then choose one that fits your requirements and budget,” he says. This approach ensures that your vehicle remains a valuable asset and not a financial burden.
Lastly, Quisumbing highlights the importance of keeping both your car insurance and life insurance up-to-date. “Car insurance and life insurance are essential investments,” he stresses. In case of accidents or damage, these coverages can protect you from financial hardship.
By understanding your vehicle’s true costs and committing to regular maintenance, you can keep your car running smoothly without breaking the bank.
