Thursday, September 26, 2013

The Cost of Cars: Is it All Getting Too Much?

We all like to have the little luxuries in life, but getting them is something that is becoming increasingly harder to do as the cost of living rises. There is little room for manoeuvre in financial terms as money is restricted not allowing for the things we love to indulge in. 

Cars are a luxury and in most cases a necessity, but the expense that surrounds them often makes them difficult to afford and to maintain. It is not simply the cost of the car itself that makes expenses begin to build - the running costs and maintenance and fuel prices combined make it something that is now a luxury for most and simply unaffordable for others. 

There are ways to attempt to bring the costs down; diesel cars, a budget direct quote for insurance, smaller engines, and older cars are all factors that play a part in reducing the costs.
Brand new cars have dramatically increased in price over the years; they have risen with the cost of living and in an attempt to be profitable in the time of economic crisis. Parts are more expensive as is labour, which significantly raises the cost of the car and any work that may need to be done to it. There are a higher number of accidents as the world has entered into a ‘suing culture’. 

There are drivers on the road that are looking for the opportunity to make an insurance claim for even the most minor of incidents - they are claiming mainly for personal injuries as a result of an accident which sees them being compensated with thousands of pounds for something that may or may not exist. This has had a direct impact on the cost of insurance premiums, which means drivers are finding it more expensive to insure their cars and even keep them on the road.
It is not just the suing culture that has added to the increased cost of an insurance policy, but the fact that insurance is now equal. There are no longer lower rates for women or older drivers. For cheaper rates, people have to earn a high no claims bonus and be considered a low risk driver, it takes time and can be relatively hard to do, as there are many accidents, which occur that, simply are not the fault of the driver. At the same time, there are more driving offences that have been introduced and will see premium costs rise.
The cost of repairs has increased at the same time as the cost of a vehicle. Parts are expensive, time and labour are costly and its just another area that adds to the expense of car ownership. Insurers are more than aware of this and the higher premiums are a reflection of the cost required to get a car back on the road after an incident. 
Finance tends to be the only option for those that are looking to own a car but cannot pay for it outright. The monthly instalments are spread over a number of years and make a car affordable, provided the financial arrangement contains no hidden terms. 

Often the interest that is added on top of the price of the car means you are paying back far more than initially borrowed, it could even run into the thousands. Car finance is a big commitment and something, which has to be paid every month regardless of the financial situation you are in, the car, will be reclaimed by the finance company if payments are not fulfilled.
It is incredibly difficult to be able to afford the things you want and the things that you need. There are means and measures that can reduce the costs of car ownership, but overall it is an expensive luxury but something that is more than worth it. It provides you with freedom and independence and makes everyday tasks significantly easier.

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