Buying a first car

Whether you are buying your very own first car or splashing out and buying a first car for someone else (teenage kids anyone?), it is important that you are fully aware of the costs involved. Car loans and payment plans can help to pay for the car itself but the extra costs are the ones that can break the bank. As well as the car, keep in mind you also have to pay for the following:

- Petrol With the ever-increasing price of petrol, it is definitely worth your while to inquire about the fuel efficiency of any car you are interested in buying. A little more money upfront could save you a fortune at the pump.

- Insurance Compulsory third party insurance, known as CTP or a Green Slip, covers you, your passengers and anyone else that may be injured in a road accident you are involved in. Younger drivers, the age of your vehicle, the type of vehicle and your accident record can all increase the price of your CTP so consider the most appropriate car for those who will be using it.

- Pink Slip If the car you choose to buy is over five years old, you will need to get it checked out every year to get a Pink Slip – which proves your vehicle has been declared safe to drive.

- Registration Vehicle registration is compulsory for cars that are going to be driven on the road (which is most of them.) It can cost up to $ 400 depending on the vehicle and must be completed annually.

- Services To ensure your car is roadworthy, it is important you put it into a garage for regular services. These do not always cost an arm and a leg but if they find something seriously wrong with your car, like faulty brakes, you could end up paying a fair bit. But having your car serviced regularly should help keep any major problems at bay.

- Tolls Depending on where you live, work and visit, motorway and road tolls can cost you hundreds of dollars a month. There is often no reasonable way of avoiding them so try to include them in your car finance budget. If you include them in the running cost of the car, the bills should come as less of a shock.

Despite the extra costs involved in buying and maintaining a car, the convenience and ease of having a vehicle at your fingertips makes it all worthwhile, and a little careful budgeting will help you cover these costs easily.

If you’re buying your first car, be sure to look around online for a great range of car loans available to help make your budgeting easier.

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