How to calculate car expenses

Buying a car is always a significant event for any person. Many people have to save money for this for more than one year. Those who already have the experience of owning a personal vehicle know that the financial costs are by no means limited to the immediate purchase. The operation of a car requires money, and the amounts can vary greatly depending on the type, class and specific model of the car. But even experienced motorists are not always able to accurately determine what it will cost them to own a new “iron friend”. What can we say about those who buy a car for the first time and soon discover that they did not quite calculate their financial capabilities. Having your own car significantly increases the overall level of comfort in a person's life, but only if the costs associated with owning and operating a vehicle are comparable to income.

Let's try to figure out what financial surprises those who decide to become the owner of the vehicle will have to face. A correct assessment of upcoming expenses will help you make an adequate choice and purchase a car within your means. Otherwise, the cost of maintaining a car can become an unbearable burden on a personal or family budget.

These costs can be more or less accurately calculated in advance. Although for a beginner, there may be first surprises here. You can't just buy a car and use it. You need to register it, that is, register it and get numbers and a registration certificate. Registration is a paid pleasure.

The services of a service center for registering a car made in the CIS will cost 153 hryvnia, foreign cars - 190 hryvnia.

The form of the registration certificate costs 219 hryvnias.

The cost of new license plates is 172 hryvnias. In the case of re-registration of a used car, you can keep the old numbers and save a little on this.

If you need to determine the price of a used car, you will have to invite a certified appraiser. For his services will need to pay about 300 hryvnia.

Forensic examination is not required when registering a vehicle, but can be carried out at the request of the buyer. It will cost another 270 hryvnia.

If we are talking about a new car bought at a car dealership, or a used car imported from another country, then another obligatory payment will be a deduction to the Pension Fund of Ukraine. For a car purchased in the showroom, the fee will be from three to five percent of its possible price. For an imported used car, the percentage will be calculated based on the sum of its estimated value, import duty and excise duty. Deductions to the PF for each specific vehicle are paid once, with further resales and re-registrations on the territory of Ukraine, this fee does not need to be paid.

The above amounts may change from time to time, but they are quite suitable for an approximate estimate of primary costs. It should only be taken into account that the bank will take a certain commission for transferring money.

And by the way, the fine for late registration of the vehicle is 170 hryvnia. Repeated similar violations will cost up to 510 hryvnia. To prevent this money from being added to the initial costs associated with the purchase of a car, you need to register it within 10 days from the date of purchase.

If you are the owner of a vehicle, there are some recurring expenses that you will face, whether you use the car 12 hours a day or take two or three short trips a month.

Such payments include the transport tax and the CMTPL and CASCO insurances.

TRANSPORT TAX

The transport tax rate in Ukraine is 25 thousand hryvnia. This is the amount you will have to pay once a year for each car subject to such taxation. But not everyone has to pay it. If you are the owner of a car that is no more than five years old and whose average market value exceeds 375 minimum wages, then no later than July 1 of the reporting year you will be sent a tax notice. Within 60 days you will have to part with the above amount by transferring it to the state budget. At the Ministry of Economic Development, Trade and Agriculture of Ukraine you can find a complete list of car models that are subject to transport tax. And the procedure for its payment is regulated by the Tax Code of Ukraine. The only way to avoid this expense is to buy a more modest and cheaper car. In 2019, the threshold amount is 1 million 564 thousand 875 hryvnia.

OSAGO

Compulsory third party liability insurance, popularly known as “avtocitizen” or “avtocivilka”. The presence of OSAGO will save you from unforeseen financial losses if you become the culprit of an accident and cause damage to another vehicle or people's health. The insurance company will reimburse the costs of treating the injured and repairing the damaged car. But at the same time, the culprit of the accident will be treated and restore his own car at his own expense.

As the name suggests, this type of insurance is a must for any vehicle owner. You can’t drive without it, violators are punishable by a fine of up to 850 hryvnia. An OSAGO policy is issued for a period of one year. Its cost is calculated according to a rather complex formula, taking into account the type of vehicle, driving experience, accident-free driving and some other factors. In most cases, an auto citizen will cost you 1000 ... 1500 hryvnias. In some cases, it is possible to obtain short-term insurance. For example, if you have just purchased and have not yet registered a car, you can buy an autocitizenship policy for a period of 15 days or more.

However, the presence of a car is checked only in the event of an accident or during the execution of a protocol on violation of traffic rules. This makes it possible for some motorists to avoid buying an OSAGO policy. Savings are very doubtful, since you can end up in an extremely difficult financial situation in the event of an accident through your fault. If an expensive car suffers, the amount of damage can be very, very large.

CASCO

Unlike motor insurance, this type of insurance is absolutely voluntary. To issue a CASCO policy or not, each car owner decides for himself. But its presence will allow you to count on compensation for damage caused to YOUR vehicle as a result of an accident, natural disaster, theft, deliberate defects by vandals and other circumstances. The cost of the CASCO policy and the amount of payments for insured events are determined by the contract with the insurance company.

If everything is relatively clear with initial payments, taxes and insurances, then it is very difficult to calculate current operating costs in advance, especially for a novice motorist. Misjudging them can lead to buying a car that ends up being too expensive to run.

The main item of current expenses is fuel. Fuel consumption is determined by the displacement of the internal combustion engine, its efficiency, and also by operating conditions. A used car can consume a set of more fuel depending on the condition of the internal combustion engine, power system, filters, and other things.

You can estimate fuel costs by estimating the approximate distance that you will drive on average per month, the driving mode (city or country roads) and the declared (passport) average fuel consumption per 100 kilometers for the car in question. Factor X remains the cost of fuel at gas stations, which can change in an unpredictable way depending on the state of the economy and political events in the country and the world.

Maintenance is carried out at regular intervals. For a new car without a run, maintenance costs can be estimated for a set of years in advance, since regular maintenance and replacement of consumables is provided for in the terms of the warranty.

If a used car is purchased, then at least it will need a full maintenance with the replacement of all consumables and materials. It is very difficult to calculate in advance the costs of servicing and repairing a used car. It is possible that it has hidden “surprises” that will appear after a while and require serious and expensive repairs. You need to be especially careful when buying a used car of a once prestigious and expensive brand - its repair can ruin you.

In general, the more expensive the car, the higher the operating costs. If you are not sure of your financial capabilities, buy a more modest car, especially if you are doing it for the first time. In this regard, Chinese-made cars can be a good buy for people with limited financial means and those who are buying their first car. They are not only inexpensive in themselves, but also quite affordable for the cost of maintenance and repair.

The car must be left somewhere. It's good to have your own garage. However, not everyone is lucky with this. If the car is inexpensive, you can risk putting it near the house in the open. But then it will be exposed to the damaging effects of moisture - in other words, rust. Vandals, thieves and car thieves will also have access to it. Therefore, it is better to find a place in paid parking or rent a garage. The cost can vary greatly depending on the city and the specific location. For example, in Odessa, a place in a guarded parking lot costs 600...800 hryvnia per month, and renting a garage will cost from one to two thousand.

Tires will need to be replaced as they wear out. The cheapest ones cost 700…800 hryvnias per unit, but prices for normal quality rubber start from about 1000…1100 hryvnias. In most cases, you need to have two sets - summer and winter. You can save a little by buying discount tires, summer tires in autumn, winter tires in spring. But saving money by buying used tires is not worth it. They are already worn out and, moreover, may have internal defects obtained during operation. Such tires are unlikely to last long.

According to the rules of the road, the car must be equipped without fail, with a tow rope and. A set of these accessories costs 400…500 hryvnias. More expensive kits may include optional but very useful things - a reflective vest, gloves, chocks, starting wires. When buying, pay attention to the expiration date of the kit components, especially the fire extinguisher.

In winter, in an emergency, a thermal blanket, a scraper, a glass washer and a two-way track can help out a lot to ensure tire grip on icy or snowy road surfaces. These items will cost about 200 ... 300 hryvnia.

The simplest one-way alarm costs from 600 to 1000 hryvnia. Prices for two-sided kits start from one and a half thousand, with a GSM module for communication with a mobile phone - from two and a half thousand. Depending on the functionality, the presence of a GPS module and various sensors, the cost of the alarm can reach 20…25 thousand hryvnias. And this is without taking into account the cost of installing the system.

If there is a need and desire, the car can be equipped with various useful and pleasant things - air conditioning, an audio system, a DVR, a GPS navigator, and decorative lighting. But all this is purchased according to the needs and financial capabilities of the car owner.

Fuel consumption depends on the condition of the internal combustion engine and other vehicle systems. Due to a worn-out power unit, excess fuel consumption can reach 10...20%. The clogged ones will add another 5...10%. Faulty spark plugs, dirty injectors and fuel lines, unadjusted wheel alignment, incorrect tire pressure, stuck brake pads - all this contributes to unnecessary fuel consumption. Hence the conclusion - monitor the technical condition of the internal combustion engine and other components of your “iron horse”, respond to suspicious signs in a timely manner and troubleshoot problems.

By reducing the weight of the machine, you can also reduce fuel consumption. Do not carry extra things with you, tools that may only be needed in the garage. By unloading a car by 40 ... 50 kilograms, you can save about 2 ... 3 percent of fuel. This is not as small as it might seem at first glance. Avoid full load, in this mode fuel consumption increases by about a quarter.

Do not abuse idling, this is not the most economical mode of operation of the internal combustion engine.

Turn off unnecessary consumers of electricity that are not needed at the moment.

From time to time, the car has to be washed or dry-cleaned. In most cases, car wash services can be waived. You can wash and clean the car yourself. This will take some time, but will save money.

Drive carefully, follow traffic rules, and you will avoid such an unpleasant expense item as fines.

Avoid harsh, aggressive driving. As a result, you will spend less on fuel, lubrication, repairs and spare parts. This is probably the most efficient way to reduce operating costs and keep your machine in good condition.