When looking into buying a car for your teenager, it’s both easy and tempting to overlook the running costs and focus on the initial price.
Unfortunately, there are many other factors to budget for that vary depending on the car you choose.
The cost of car insurance, fuel, sporadic costs of maintenance, repairs, and hopefully a limited number of parking tickets and speeding fines can make driving more expensive than many of us originally anticipate.
With this in mind, buying a used car may be a cheaper alternative to purchasing a new one.
However, insurance costs and fuel prices actually vary in price depending on a number of factors, so the cheapest car isn’t always the most cost effective option.
Car insurance is essential when buying a car, and if there’s one downside to being young, it’s that it’s typically more expensive for drivers under 25.
The level of risk of an accident determines insurance premium and insurance providers consider young drivers to be of a higher risk. However, there are methods to keeping the cost as low as possible.
Firstly, the car you choose to buy will affect the insurance premium price. A safer car means lower insurance, so buying a newer model with the latest safety features may keep costs down.
Sports cars and highly modified vehicles are not only pricey to purchase, but are also pricey to insure.
If your car includes features designed specifically to make it go faster, your insurance is likely to be higher than you’d like.
When taking out insurance, do your research and shop around. Your insurance provider may not necessarily be the best option for a young driver, so compare quotes from multiple companies and the level of cover you get for the price.
Another ongoing cost of running a car is the obvious cost of fuel. On average, it costs $1.79 per litre of unleaded petrol, but this may vary depending on where you live, due to differing taxation policies.
It’s worth researching price and estimating the number of kilometres you’ll use your car for each week. With petrol costs rising, the fuel efficiency of a car is an important factor to bear in mind.
A slightly cheaper car may turn out to be more expensive to run long term.
The various costs involved and the numerous models of cars and insurance providers available can be somewhat daunting, but with enough time, care and research, you’ll be sure to find a good deal.