Buying a vehicle is a considerable investment by all means. However, many people often completely forget about other follow-ups that will affect the value of their dream rides. Along with unavoidable depreciation, other expenses add to your vehicle running costs. Don’t worry, as there is good news. You can minimize the impact of these financial setbacks in the long run. In this blog, we’re telling how you calculate car running costs and what they include. Follow these few simple tips to cut down your annual maintenance costs.
What Is The True Cost Of Owning a Car (TCO)
Somebody coined the abbreviation TCO, and it has become circulating among car mechanics and experienced drivers. This acronym stands for ‘total ownership costs’ or ‘true cost of owning a car’. We understand the annual cost of running a car under this term. There are many other expenditures past the final price regardless of the vehicle’s type and age. They fall into two large groups. The first is running costs, while the second deals with standing charges. Each group, consequently, consists of few interrelated aspects. Though, both influence the long-term value of your ride very similarly.
What Are Car Running Expenses
In short, these are the day-to-day costs you may incur in order to keep your vehicle operating. This group encompasses lots of different things that you have to take into account before buying.
Running costs include, but are not limited to:
- fuel expenses (or payments for electricity, as battery-powered motoring is on the cutting edge nowadays),
- tire changes,
- scheduled and unpredicted servicing,
- prices of spare parts and labor tolls,
- and any other expenses aimed at keeping your vehicle running.
What Are Standing Charges in Vehicle Maintenance Expenses
All non-operating tolls, fees, and charges fall into this category. Standing charges are:
- insurance (and premiums, if there any),
- depreciation (it’s often the most overlooked factor, though it remains entirely unavoidable),
- loan/financing interest rates which make your car even more costly to operate,
- road and parking tolls.
How To Calculate Car Running Costs
Multiple tools on the Web can help you. Websites like Edmunds and Black Book allow you to obtain comprehensive information on the depreciation and other car running costs specific to your vehicle according to its year, make, and average mileage.
What To Do To Cut Vehicle Running Costs Down
At Salvagebid, we have you covered when you’re looking for some handy tips. We don’t claim they can ultimately prevent you from spending money on your car, though you’ll surely save big.
Never neglect scheduled car maintenance. Diagnosing an issue may help avoid a four-digit sum for repairing it. Don’t forget to adjust your driver’s style according to the current situation on the road. There is no sense in burn-outs straight off the line and then getting stuck at long red lights at the following intersection. Such driving may lead to faster wear & tear.
Finally, here is the most important. If you’re still choosing a car, don’t skip an opportunity to compare them along with their ongoing maintenance costs. Don’t let depreciation despair you. It has already affected used and damaged cars that we offer on Salvagebid. By contrast, new vehicles lose on average 25% of their initial value as soon as you drive them off the lot.
The sums you spend on annual car maintenance can vary from model to model. Don’t get upset since we know some cars that feature the easiest maintenance. Take a look at our earlier blogs dedicated to car upkeeping for better knowledge. Lastly, make sure to check our extensive inventory. Once you’ve found the vehicle you’d like to win, register with us to place your bid on it. Upload a copy of your passport or a government-issued ID and set your buyer power by placing a refundable security deposit to finalize your registration. Congratulations, now you are ready to bid! Reach us online or give us a call at + 1 (360) 347-1300 (6:00 AM – 4:00 PM Pacific Standard Time, Monday through Friday) with any questions.