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Renting V Owning Facts
Optional Extras
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Renting Vs Owning Facts
| Cost to Rent A Car | Cost Benefit $(Minimal Outlay) | Cost & Loss to Own A Car | Cost $ (Estimated) |
| All inclusive daily rental | 35$ per day monthly 55$ Daily | Unnecessary new purchase price expense, including Dealer Delivery (at least $1,695) plus Registration, CTP, Green Slip and Stamp Duty (at least $1,844) | $30,000 $1,695 $1,844 |
| New Purchase Loss (Immediate Capital Depreciation) 7 days later, say 50% (around $15,000 on a $30,000 car). It is a fact of life once you drive a car out of a dealership, it immediately drops in value. This can be quite high within the first 7 days of ownership | $15,000 | ||
| Road service Membership ($70 to $140 per annum) | $140 | ||
| Loan expenses where finance is obtained for vehicles purchase (establishment fee, mortgage valuation fees, introduction fees, Brokerage, Contract Stamp Duty, REVS Fees, Interest Charges, Monthly Account, Maintenance Fees, Early Repayment Fees and Loss Adjustment Fees) Calculated by Financier at their discretion of their loss if loan paid out early etc. | $16,000 | ||
| Financial Exposure in the event of car being stolen and not recovered or a total loss write off in an accident. Cost of payout of GAP between insured value and Financier Payout. | $17,000+++ | ||
| Exposure to Finance Payout (Repossession) where you lose your ability to service a loan through illness, injury, sickness, trauma, death or involuntary unemployment. Not only can this affect your Credit Rating and ability to ever borrow money, but could cause you to become bankrupt. | $Not Ascertainable At this time | ||
| Scheduled Servicing Costs (Anywhere between $620 to thousands of dollars). | $800 | ||
| Annual Registration Inspection Fee ($40 Inspection Fee plus around $300 in lost time arranging and attending to inspection station and time awaiting inspection to be complete plus costs of any necessary road safety repairs to effect authorisation of Registration. | $340 | ||
| Adjusted Depreciation for mileage travelled on car, impacting greatly on future value of car compared to low kilometre cars of similar age. | $Thousands | ||
| Ongoing Wear and Tear Depreciation (e.g. damage to bodywork from parking car in shopping centres, stone chips, bird droppings on paint etc.) | $Thousands | ||
| Major Servicing Costs Such as Engine Replacement where engine failure results | $Thousands |
A typical car loan is a fixed-rate personal loan with terms up to five years, charged at current bank interest rates of about 9 to 11 percent annually.
On some loans rates could be as high as 15%, 16% even 19% and 20%. As you can see purchasing a new car can be quite expensive.
While the car is being financed, repayments are a considerable component of the car's costs. The higher the price, the greater the repayments. Once the loan is paid off, repayments don't have to be factored in.
Furthermore, the longer you keep the car, the more interest costs fall as a proportion of the overall cost of the car during its life.
But, banks & finance companies don't generally lend for terms of more than 5 years. This means you will pay them plenty in interest and charges, so that they get the maximum benefit and not you or your business.
Camry Costs : bumper to bumper
Overall motoring costs in cents per km based on 15,000 km/year.
Loan Interest
| New to 3 Years | New to 5 Years | New to 10 Years | |
| Depreciation | $26.90 | $19.30 | $11.70 |
| Interest | $9.80 | $7.90 | $4.00 |
| Fuel | $9.00 | $9.00 | $9.00 |
| Tyres | 60 cents | $1.10 | $1.10 |
| Service & Repairs Total Average Cents per km | $4.20 | $4.40 | $5.10 |
| Total Average Costs per week | $170.48 | $144.52 | $111.64 |