Owning a car can come with some stress, there’s no doubt about it. Often, the source of that stress is financial. As one of the most expensive items you’re ever likely to own, you want to make sure that you’re not paying any more for your car than you have to. However, here, we’re going to look at some of the most common hidden costs of owning a car, as well as what you can do about it.
Depreciation
By far the single biggest car ownership cost that regularly gets overlooked by drivers. All cars lose value over time, as soon as you start to drive them off the lot. New vehicles tend to depreciate the fastest, losing up to a third of their value in the first year alone. This can be a surprise when you decide to trade in your car only to find you get a lot less than initially expected. Look for cars with lower depreciation rates that better retain their value if you want to avoid that surprise. Otherwise, give your car the car it needs to maintain its value for longer.
Inflated Financing Costs
Most people buy their car by financing it rather than paying cash. However, if you don’t do your research and choose the best financing options, you may have inflated costs that can make your car more expensive than it needs to be. There has recently been a rise in PCP claims for that very reason, people were found to be mis-sold personal contract purchase agreements that saw them paying more than they should have. Many buyers were not informed these costs could be negotiated. Always do your research on what financing options are available and, if you were given a bad finance deal, see if you could get a refund.
Insurance Premiums
You are legally required to purchase car insurance, but the premiums on it can vary widely based on age, location, driving history, and the type of vehicle you drive. Some cars like sports vehicles come with much higher insurance costs. Be sure to shop around for quotes to avoid paying more than you have to, and look for discounts based on things like a safe driving record or adding anti-theft devices to your car.

Fuel Costs
We’re all paying for the fuel that keeps our cars going, but you might underestimate how much, exactly, it costs you. Aside from your vehicle’s fuel efficiency, your driving habits could impact it, such as how avoiding rapid accelerating and unnecessary idling could help save you money. You should also look into regional fuel prices and the fuel cost comparison sites that can help you find the best deals near you.
Maintenance and Repairs
It’s vital to put in the work that keeps your car working effectively and safely on the road. However, even routine maintenance tasks like oil changes, tyre rotations and brake replacements can add up. When you add unexpected repairs, such as engine trouble to it, those costs can skyrocket. Use sites like the Reliability Index to get to know the common issues your model car has, and how much you should prepare to pay in order to keep up with the costs that it’s likely to bring your way.
Taxes and Registration Fees
Every owner has to pay a registration fee when they purchase a new car. It’s often not that much, but should be accounted for in your budget. Similarly, you have to pay taxes on your car, which will vary based on value, type, and age. Newer and higher-value cars typically come with higher cost levels. You can look at tax incentives that could see you pay less on these, such as if you drive a hybrid or an EV but, in most cases, you simply have to ensure that you make room in your budget for them.
Parking Costs
Anyone who routinely has to pay for parking at their place of work can tell you how quickly parking costs can start to balloon up. Unplanned parking expenses can see you paying more than you have to, especially in crowded city centres. When you’re planning a trip, do your research and see if there are parking discounts available, and use apps to find cheap parking near you.

Your Tyres
Your tyres are going to have to be replaced every so often. It’s an inevitable, but unexpectedly costly part of car ownership. However, you can help mitigate it by ensuring that you’re not engaging in habits that age and damage your tyres faster than you should. For instance, you should regularly check your tyre pressure and alignment, rotate them according to manufacturer recommendations, and always look for the best prices when it comes time to replace them.
Road Tolls
While it may not affect everyone, depending on where you are, you may frequently be paying one of the toll roads that see you facing a fee every time you use a certain road. Getting to know the toll roads in the country can help you avoid having to pay them by, for instance, choosing a toll-free route, instead. Most of these toll roads are related to river crossings and bridges.
Add-Ons And Accessories
This cost only typically applies at the point when you first buy your car, so it’s not something you need to look out for routinely. However, buyers often get sold things they don’t necessarily need when trying to buy a car from a dealer. Even if you do want some of the commonly sold add-ons, like floor mats, roof rackets, infotainment systems and the like, you can usually get a better deal for them when looking at other places that sell them. Make sure that you know precisely what you want when buying a car and be firm about what you do and don’t want.
It’s not always easy to manage the costs of your car, but with the tips above, you can ensure that you’re able to manage them as best as possible so that they don’t end up draining your bank account.