The key considerations of driving a car
01 . 10 . 18
By Ignatius Wilson
There are a number of considerations need to be made before driving your car for the first time, these are either legal or economic (how much things cost). The first things to take into account of course, is if owning and driving a car is affordable. The second is ensuring the insurance and registration is maintained.
Cars are expensive. Petrol alone can cost $150 per month or nearly $2,000 per annum. Add this to the estimates of running repairs, upgrades and services and you have a large balance to manage each year. This is not even considering the capital outlay of the vehicle in the first place, although it is always cheaper to buy a car outright than through finance.
The next cost which is unavoidable is the cost of CTP and registration. Compulsory third-party insurance protects third parties who may be affected by an accident you cause. It doesn’t protect you or your property against injury or damage. It is compulsory to have this insurance before your wheels hit the ground! It insures against only some of the financial risks of driving.
You should consider insuring your vehicle with third party fire and theft, third party property damage, fire and theft or comprehensive insurances in addition to CTP. These cost more but hedge against greater and more varied risks than just CTP.
Registration is managed on a state and territory level and generally involves three elements: receipt of CTP, a roadworthiness certificate and payment of registration fee. Registration may cost a few hundred dollars.
In addition to straight registration, there are fees for number plate registration, up to $10,000 for special plates and replacing, cancelling or changing registration! These all vary throughout the states and territories.
You can see that a car of any value quickly turns into a large and expensive investment! This is an investment that actually depreciates in value, but offers great value in its utility.