Hot Tips for Budgeting- Owning a Vehicle

Know your running costs

  • How much is your rego? Enter your vehicles licence plate number online at www.rightcar.govt.nz and your annual licencing fee (rego) will come up. Put this into your budget!

 

Do you need a WOF yearly or twice-yearly?

  • Add another $55 for each WOF to your budget.

 

What about maintenance?

  • We recommend clients allow a minimum of $500 for vehicle maintenance in their budget. This will cover minor repairs, and a couple of new tyres. You know your vehicle. If you have an older vehicle with high km’s, then expect higher maintenance costs. Be realistic when you budget for maintenance.

 

Insurance

  • Do you have at least third-party insurance? If not, you run the risk of being liable for damage to other vehicles in the event of an accident. Ask anyone who has found themselves in this situation – it really isn’t worth it.
  • Third-party insurance will not cover damage to your vehicle, so if you owe money on it you will be required to have comprehensive (full) vehicle cover; and if can’t afford to replace your vehicle the event of an accident, then you also need to consider having full insurance.
  • How much excess can you afford to pay? Your premium will be lower if you elect to pay a higher excess.
  • If you are under 25, or have someone in your family who is under 25 and will be driving your car you need to talk to your insurance company. Some company’s have a lower excess for named drivers (under 25), and it may on what licence the driver holds (learner, restricted or full).
  • Shop around – always be honest – and make sure you have adequate insurance cover.

 

Vehicle Finance

  • Always do your homework before financing a vehicle. Check the cost of the finance, the interest rate and fees. Know what you can afford. The guide to car loans on the Sorted website is a great starting point: https://www.sorted.org.nz/a-z-guides/car-loans
  • Never buy a vehicle that still has money owed on it. If you buy a vehicle that still has money owed on it, you risk losing the vehicle to repossession – through no fault of your own!

 

Text before you buy!

  1. Text a message to 3463 using the vehicle’s registration number and VIN or chassis number.
  2. You will receive a reply which indicates whether or not the vehicle has a registered security interest.
  3. This service only costs $3 and can save you thousands!

 

Case Study

  • Mandy drives a Honda Stream, 2001 model. Her registration cost is $134.95.

 

Annual cost Weekly cost
Annual registration fee $134.95 $ 2.59 Mandy needs to put aside $13.25 a week so she has this money when these costs come due.
WOF checks $ 55.00 $ 1.05
Maintenance estimate $500.00 $ 9.61
Insurance (full) $ 546.00 $ 10.50 Paid fortnightly $21
Petrol $4160.00 $ 80.00
Vehicle finance
TOTAL COSTS: $5395.95 $103.75

photo credit: 1973 Plymouth ‘Cuda via photopin (license)

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