How to prepare for unexpected car costs

Owning a car can be an expensive business, which is not much of a problem if you are prepared for it, but if you aren’t ready for the potential price of car ownership, it can come as something of a shock to you and your bank balance.

Of course, we all know that we’ll need to pay regularly for things like fuel and insurance and annual visits to a good local MOT test centre, and we plan for that, but there are lots of unexpected costs that we often don’t think about much until they happen, so let’s take a look at some of them now:

Accidents

Unfortunately, car accidents are extremely common, and as well as being pretty scary, and potentially dangerous to your health, they can also be quite expensive too. Although you will need to have insurance, you will probably have to pay an excess for any damage, and your insurance premiums could rise as a result.

No one wants to plan for having an accident, but when looking at your policy options, you should factor the possibility into your calculations.

Parking tickets

Parking tickets and other traffic tickets are something that you should be able to avoid in theory simply by sticking to the law. However, many drivers get caught out when they travel to unfamiliar places where they are not sure of the system or where it is and is not permissible to park.

Again, you can prepare for this to a large extent by scoping out a destination and its parking rules before you visit, but you do need to remember to do that or you could get into trouble and end up out of pocket.

Vehicle recovery

We all hope it never happens to us, but more of us than would like to admit it have ended up stranded on the road with a vehicle that just will not budge, When that happens, you will normally need to call a vehicle recovery company.

For those in the Capital, Crown Car Recovery are based in London and will be able to help. Other companies like the AA operate all across the UK.

Having a car recovered can be expensive. You can make it less expensive, and less of an ordeal by subscribing to an annual plan, but many people don’t bother thinking they will never need it which means that they end up out of pocket and with a longer wait for help. Think very carefully before you end up in the same position.

Depreciation

Okay, so depreciation isn’t exactly a cost, but it’s worth noting that, if you buy a new car, the second you drive it away from the dealership it will lose around 10 percent of its value, After 12 months, that will rise to 20 percent and within five years, it will be worth 60 percent less than you paid,

So, think carefully about whether a new car is a good investment for you, or would a used one suit your needs better?

Now you know a bit more about some of the unexpected car costs that can crop up, hopefully, you can avoid falling foul of them, or at the very least, be more prepared when they do happen.

** This is a collaborative post