Understanding Total Cost Of Car Ownership

Buying your first car is exciting. After all the research and planning you’ve done up to now, you can finally go ahead and buy your set of wheels. But owning a vehicle and all the costs that come with it  goes well beyond the monthly instalments and fuel bills. There are many other factors to consider. Moov helps you take all the necessary factors into account and the costs associated with owning a vehicle that you will need to consider, so that you can have peace of mind when you buy your first car.


Your Vehicle Loan Agreement

Understanding the key concepts of vehicle finance will benefit you greatly in the long run. It will ensure that you don’t get stuck in a long-term financial agreement that is more expensive than you bargained for. It’s important to consider the interplay between your vehicle deposit, interest rate, payment term and balloon payment. While we cover the details of each factor in our Car Finance Terms You Should Know  blog, it’s important to remember that although a lower instalment price may be an enticing prospect, it can result in a larger total amount paid over the lifetime of your loan term.



Protect yourself against unforeseen circumstances that come along with owning a vehicle. Unexpected expenses as a result of small dents, scratches, and cracked windshields can wreak havoc on your budget, so factoring the cost of an insurance plan means you can trade the uncertainty of unexpected emergencies off with the certainty of a monthly insurance fee*. Insurance will become even more important in the event of vehicle theft or an accident as it can prevent you from having to pay off your vehicle loan agreement long after your vehicle has been stolen or written off in an accident.


Service & Maintenance

While vehicle insurance covers damage, theft, and other emergencies, the servicing and maintenance of your vehicle will lie with you, the vehicle owner. How much you can expect to pay for servicing or maintaining your vehicle may differ depending on the car you purchase and what standard service or maintenance plan it has. A new vehicle usually has a standard service schedule which requires the vehicle to be serviced at a franchised dealer in order to maintain its reliable operation. The manufacturer will provide peace of mind in the event something fails in a car that has been properly maintained. Many new vehicles include a standard service plan in the cost of purchase. A service plan covers the costs associated with servicing a vehicle, including labour and standard parts.

Service plans usually have a stipulated time and mileage limit, which means the vehicle owner will need to take over service payments once those limits are reached. In addition to the cost of recommended services, a maintenance plan  covers specific wear and tear items such as wiper blades and brake pads, for a specific duration or time limit. When this time or duration limit comes to an end, maintenance of the vehicle would need to be covered by the owner.


Moov Includes Total Cost Of Ownership

Moov’s mission is to make the car purchase process as effortless and transparent as possible. This is why we include the estimated total cost of ownership in our vehicle recommendations. This means that our instalment prices might be slightly higher, but it also means you’re less likely to be surprised by hidden costs further down the line. It also means you’re likely to pay less than cheaper instalment deals over the lifetime of your loan agreement. This is just another reason why it makes financial sense to choose Moov.


Visit moovme.co.za to get started or leave your details in the form below and a member of our team will contact you to assist.


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