HAVE you ever been late to work because there was a mass transport strike that day? Did you ever lose your wallet when you took the late night jeepney on the way to your home? Oh, look, my classmate’s dad drives a brand new sports car whenever he is picked up from school.
These are just some factors motivating people to buy their own motor vehicles, whether it be a sports car, a family van or a motorcycle.
In this difficult time wherein, mass transport is limited and the Covid-19 Delta variant is quickly spreading, having one’s own motor vehicle can be a big source of comfort. At the same time, however, most of us do not have a complete idea of what it takes to properly maintain and take care of your mobile asset.
To give you an idea of what are the usual costs associated with maintaining a midsize Sports Utility Vehicle or SUV, here are the list of estimated costs related to each part:
- Required costs: yearly registration with the Land Transportation Office (P5,000-P6,000) depending on make and model of vehicle; yearly car insurance premiums (P8,000-P32,000 and up) relative to the model and type of vehicle. The newer and more expensive the vehicle, the higher the premium.
- Frequent costs: Change engine oil (P3,500-P5,400 per 7,000 kilometers); change brake pads; front and rear sets (P5,000); and, reface of four brake discs (P3,600)
- Less frequent costs: Electrical works (P1,500 and up, depending on extent of repair); new car alarm (P3,500); door handle replacement (P2,200); fan belts and timing belts (P500 and up); tie rods and bushing (P5,000); wheel bearings parts; and, labor (P7,000).
- Major costs: 3SMF battery (P6,000-P9,000); highway terrain wheels SUV size (P6,000 up); auxiliary fan (P7,500); new radiator (P9,000); transmission leak repair (P20,000 and up); engine overhaul (P100,000); and, engine support replacement with labor cost (P10,000).
- Minor costs: air cabin filter (P600); air engine filter (P600 plus); car wipers (P2,300 per set); and, wheel vulcanizing (P150 and up, depending on size of patch to fill).
- Cleaning costs: engine wash (P600) and complete car detailing (P6,000 up)
- Miscellaneous: village association stickers or school stickers (P200 and up)
After reading the above list, you now have a general idea of the costs related to owning a motor vehicle. In order for you to get the best out of your personal asset, keep in mind the following thoughts:
1. Do not buy a motor vehicle if you cannot really afford the monthly amortizations plus regular maintenance.
2. Must like mobile devices or other electronic or mechanical equipment, your vehicle is a depreciating asset.
3. If however; having a motor vehicle supports greatly your means of livelihood, career goals, or family plans, then choose one that fits your requirement, and your budget.
4. Know the why of your big purchase. Do you need a van with more spacious legroom in order to fit your growing children? Do you need a pick-up if you need to haul lots of inventory?
5. Are you buying a part for a want or for a need? Do you really need to change your stock rims? Are you getting a mountain terrain type of tire when you only go driving on highways?
6. Don’t delay on minor repairs. Ignoring small things like squealing brakes might lead you to even bigger repairs such as a damaged rotor disc, or worse, a fatal car accident. The more you know and use your vehicle, the easier it is for you to feel that something is amiss.
7. Schedule your vehicle for regular check-ups and maintenance. Your trusted mechanic can take a look at what needs to be fixed early on.
8. Keep your car insurance and your life insurance in effect. If your car gets flooded and you have car insurance, you can still get the value of your car back. And if you are also injured and need to be hospitalized, your life with accident insurance can really save you from bankruptcy or wiping out your life savings.
9. A vehicle is only as good as its driver. Hence, drive carefully and responsibly. Follow traffic signs and regulations. Driving is more of a privilege, and is not a right.
“Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows.” James 1:17 — The New International Version (NIV)
Please watch out for my upcoming e-book, which tackles starting your own food business.
Raymond Anthony Quisumbing is a Registered Financial Planner of RFP Philippines. Follow him at twitter at OhMyFinancePH. To learn more about personal-financial planning, attend the 92nd RFP program this October 2021. To inquire, e-mail [email protected] or text at 0917-6248110.