With such a wide variety of cars available on the market, it has become much easier to buy a car. Manufacturers are now offering a slew of new low-priced car models from affordable family cars to SUVs. Low-cost cars have changed the car-buying landscape in India, with an increasing number of individuals becoming car owners. It has enabled people from all economic strata to achieve their dream of owning a car.
Among other several critical variables, the cost of car ownership is a significant area to consider. While most people believe that the purchase price of a car represents its actual cost, the reality is very different.
How much does car ownership cost?
After deciding a budget and desired car, the next critical step in buying the car is calculating the car's actual cost of ownership. The car's purchase price does not accurately reflect the true cost of ownership, as the owner will almost definitely incur extra costs and expenses.
For instance, if you want to invest Rs.5 lakhs in a car, this is not the only price associated with the car. In the next five to ten years, there will be other costs, such as registration tax and road tax, car insurance premiums and EMIs (if you have taken out a car loan), monthly fuel expenses, and costs associated with car maintenance and servicing.
However, it is impossible to correctly assess the cost of ownership of a car because most costs are variable. In any case, a general estimate of the additional expenses will be enough to determine the actual cost of ownership.
Rising fuel costs have pushed up the cost of car ownership in India. While car manufacturers have recently cut the price of car tags and spare parts, this has had little effect in reality due to the rise in fuel costs. Since the price of fuels like petrol and diesel have risen, the cost of ownership has increased. Fuel costs account for more than 85 percent of the average cost of a car, including costs for repair and maintenance, tire replacement, and so on. The poor state of Indian roads also adds to an increase in a car's TOC.
Additionally, the ever increasing traffic adds burden on critical car parts, resulting in increased damage. Because of this, your car spends more time in the garage than on the road. These variables place a considerable financial burden on the car owner. Additionally, the cost of car ownership in India is higher for diesel cars than for petrol cars. Based on the following criteria, you may distinguish between a diesel and a petrol car's TOC.
The radiator components, clutch & pressure plate, battery, and timing belt are all parts of your car that face wear and tear. Petrol cars are less expensive to operate than diesel ones.
Buying a car in India has gotten significantly easier due to a wide choice of affordable cars. Additionally, you may take advantage of various offers and discounts from dealers when purchasing a car, which simplifies the process considerably. You can choose from a wide range of cars, from affordable hatchbacks to high-end sedans. Calculating the actual cost of ownership before purchasing the car will help you decide the real value of deal.