The Cost of Vehicle Usage: A key consideration before your next car purchase
If you’ve been following my articles, you probably know that I have a soft spot for hanging out at auto workshops. There’s something captivating about seeing cars stripped down to their essentials, revealing the hidden mechanics and quirks that many owners never think about—until they have to.
One observation that consistently strikes me here in Ghana is the sheer number of abandoned vehicles, particularly luxury or high-end models, sitting idle at workshops and used car dealerships. These aren’t forgotten relics of the past; they’re often cars that owners simply can’t afford to maintain.
Scrolling through online marketplaces, you’ll sometimes come across stunning luxury vehicles being sold at what seem like bargain prices. Imagine a car that originally cost over a million Ghanaian Cedis being listed for just two hundred thousand. Sounds like a deal of the century, right? Well, not so fast. Before you jump at that shiny, seemingly affordable luxury car, it’s essential to think about a crucial yet often overlooked factor: the cost of vehicle usage.
What Is the Cost of Vehicle Usage?
The cost of vehicle usage refers to all the expenses directly tied to operating and maintaining a car. It’s not just about the initial purchase price—it’s about what it takes to keep that vehicle on the road and running smoothly. This cost can vary significantly depending on how much and how often you drive, and it’s something that can turn your dream car into a nightmare if ignored. Here are the key components you need to consider:
- Fuel Costs
Fuel prices can be unpredictable, and a car’s fuel efficiency plays a huge role in how much you’ll end up spending at the pump. That flashy, V8-powered luxury sedan might turn heads on the road, but it will also empty your wallet faster than you can say “fill up.” I remember an episode at a motorcycle repair shop; the mechanics were referring to a particular type of motorcycle as a “petrol station”— meaning that the motorcycle had terrible fuel consumption.
- Maintenance and Repairs
Routine maintenance like oil changes, brake pads, and tyre rotations are just the tip of the iceberg. High-end vehicles often require specialized parts and services that can be costly. And let’s not even get started on unexpected repairs. One faulty sensor or a failed electronic control unit could set you back thousands of Cedis. For example, the Bugatti Veyron wheels should be replaced every 10,000 miles or 1-2 years, while the tyres need replacement about every 2,500 miles due to high stress and specialized design for extreme speed. At what cost you may ask? Estimated at 15,000 USD equivalent per wheel!
- Tyres
It’s easy to overlook the cost of tyres, but luxury vehicles often come with specialized, high-performance tyres that wear out faster and cost more to replace. That is if you will find a dealer that stocks them here in “Obimanso”. If you’re clocking significant mileage, this can add up quickly.
- Insurance
While insurance may seem like a fixed cost, policies can vary based on the type of vehicle and its usage. High-value cars typically come with higher insurance premiums. Some insurance providers even have usage-based components, which could mean higher costs if you’re driving often. I have come across several luxury vehicles in Ghana with 3rd party insurance policies. Why you ask? Because the owner can’t simply afford a comprehensive insurance policy on that shiny expensive vehicle.
- Depreciation
The moment you drive that luxury car off the dealership, its value starts to drop. Depreciation hits high-end cars particularly hard, and it’s accelerated by higher mileage. This means that while you might snag a great deal on a used luxury car today, its value could plummet faster than you expect, making it a poor long-term investment if you’re not prepared.
Can Your Income Support It?
The reality is that if your income can’t comfortably support these ongoing expenses that “steal” of a car might end up costing you more than you bargained for. The allure of owning a luxury vehicle can be strong—who doesn’t like a little “bluffing” from time to time? But true financial wisdom lies in assessing whether you can afford the full package, not just the initial price tag.
So, before you let your heart run away with that “bargain” luxury car, pause and crunch the numbers. Factor in the fuel, the maintenance, the insurance, and yes, even the tyres. Only then can you make an informed decision that ensures your new ride brings joy and not financial regret? After all, it’s better to drive a modest car you can maintain than to park a luxury one you can’t.
Happy Motoring
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The author, Edward Boateng Opoku, also known professionally as Eddie Poku, is an automotive enthusiast and content creator. He’s the brain behind Ryde Channel on YouTube.
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