Think beyond the purchase price. It’s not just what you pay for your new or used car . It’s also what the car costs you over time. Be aware: that good feeling about the ‘great deal’ you got quickly disappears if the cost of running your new vehicle creates enduring stress if you don’t get it right.
Price is an important consideration in deciding which car you buy. But it shouldn’t override other considerations – car safety characteristics, meeting your requirements, fuel efficiency, reliability, vehicle quality... Things that will help determine the ongoing cost of owning your new car.
It’s not the price you pay, but rather the total cost of ownership that will determine whether you really ‘get a deal’.
Short term gain on price can mean long term pain. And the pain can be pretty acute.
Avoiding Cars That Cost
Many New Zealanders have their own car horror stories... The money lost on a new car bought and sold at the cost of horrendous loss in value... The blown head gasket miles from home... The many days waiting while the required part was sourced...
Careful consideration of the full cost of owning a car before you buy it can save you a lot of pain.
Total Cost of Ownership: 12 Things to Consider
- Initial Price – pretty straightforward – what you pay for your car matters and feeds directly into other cost factors...
- Registration – we all need to register our vehicles.
- Financing Your Car – if you need to borrow money to buy your new car, you need to be aware the total cost of financing your vehicle. Consider your options carefully and be aware of the true finance costs and remember that adding the cost to your mortgage could mean you are paying the car off long after your have sold it. (Note: your interest rate or cost of credit effects the cost of ownership – talk to your dealer about tailoring your vehicle finance to suit your needs.)
- Vehicle Insurance – premiums can vary for similar cars – check how much insuring the particular model costs. (Some vehicles are at greater risk of being stolen and cost more to insure.)
- Depreciation – sometimes forgotten, depreciation is a key cost of owning your car: a car that ‘holds its value’ will cost you less over time because you will be able to sell it for more when it’s time for a new vehicle again.
- Quality – quality cars hold their value because people know they are well constructed, safer than other cars and reliable.
- Reliability – unreliable cars spend more time off the road – a cost felt not only in the back pocket but in disruption caused when your car isn’t available.
- Servicing Costs – some cars cost more to service than others – engine design, availability and cost of parts, the need for specialised mechanic...
- Servicing locations – what sort of approved dealer network is available for the make of car you are considering?
- Parts supply – is the maker of your car make committed to making parts easy to source?
- Fuel Efficiency and Economy – simple: the more fuel your car consumes for every kilometre you travel the larger the drain on your finances. (And don’t forget road user chargers if you are looking at a diesel.)
- Sustainability – fuel use and vehicle emissions are just part of your car’s impact on the environment . Design, production, distribution... It all has a cost to the environment.
Taking the time to investigate the overall cost of owning the vehicles you are considering buying means knowing their true price.
We believe a better tomorrow starts today
At Toyota we believe a better tomorrow starts today and we are committed to minimising the total cost of ownership and environmental impact of our vehicles.
Toyota makes quality vehicles that are highly regarded by those in the trade as retaining their re-sale value.
We make it easy to understand the total cost of owning your new Toyota. Our service plans, warranties, insurance packages and a network of 86 servicing locations give you the security of:
- Knowing what running your car will cost
- Knowing any problems that might arise will be dealt with promptly and efficiently
We’re proud that:
- That means our vehicles hold their value
- And we have 85 service locations throughout the country and a a huge parts warehouse crammed full of almost any part you might need... if we don’t have it we will fly it in from Japan at no freight cost
