The car is necessary, on many occasions, but it represents a big black hole through which money escapes. “If you don’t inevitably need it to work or survive, financially speaking, and with all the mobility options that exist today, it’s much better not to have a car,” Natalia de Santiago, an engineer and finance expert, assures in statements to RAC1. who published the book Invest in you (Planet).
Before buying one, it is necessary to keep in mind what expenses it entails: insurance, ITV, repairs… It is not easy to be aware of all the budget involved in owning a vehicle. Next, we review figures.
Buying a new car is more expensive than ever: it costs 23,443 euros on average, according to data from the Tax Agency from last year, 20% more than in 2021, and 50% more than ten years ago. New cars became 8.5% more expensive in January 2023, compared to the same month the previous year.
According to finance expert Natalia de Santiago, it is necessary to plan well and pay for cars in cash with the money saved. If you have to ask for a loan, she recommends giving the highest possible down payment, financing the loan in the shortest possible term and paying close attention to the final payment, and being careful with the opening and cancellation commissions.
How much does it cost to pass the ITV? The Spanish Association of Collaborating Entities of the Administration in the Technical Inspection of Vehicles AECA-ITV has published the ITV rates for 2023, updated in the Spanish area. They are fixed rates established for each community. In Catalonia, the prices given are maximum (that is, operators can charge less): catalyzed cars, 30.01 euros; diesel passenger cars, 34.22 euros.
Regarding maintenance and repairs, specialized motor portals have calculated that each kilometer costs about 0.06 euros (filter and brush changes, tires, etc.). Depending on the kilometers you do, you must multiply them by that cost in maintenance and repairs. In Spain, the useful life of the cars is an average of 13 years, and it is estimated that the invoices of the workshop during these years amount to about 9,900 euros, also on average.
What are the most common repairs or revisions, how much do they cost and how often should they be carried out? Joel Becerra, a mechanic from Lleida who has just won the award for the best mechanic in Spain, tells us.
Car insurance has become more expensive by no less than 45.7 euros in one year, 7.86%: insuring a vehicle now costs 627.2 euros on average, according to the comparator Kelisto. The increase in the prices of car policies began to grow at a higher rate than the CPI from July 2022, when the rates became more expensive by 15.25%, compared to the 10.2% that the CPI will register. The trend continues, as recognized by insurers.
Although if you are saving you will wash the car at home, taking it to wash thoroughly is a necessary expense. The prices of the car washes range from 6 to 7 euros for a simple tunnel car wash to 70 or 80 euros for a thorough hand cleaning. In fact, the data collected by Cronoshare shows that a complete cleaning of a car can cost from 85 euros to more than 500 euros.
It all depends on the size of the car and the services included. Some examples: cleaning the upholstery of the car can cost between 70 and 150 euros, washing the car engine would cost around 35 euros, just polishing the body would be between 40 and 180 euros and polishing the headlights, between 15 and 35 euros.
If you can park your car on the street or have a house with a garage, you are lucky. The citizens of the state paid, on average, 71 euros per month to rent a garage space in 202, according to data from the study Cumulative variation of garages in Spain, based on the prices of rental garages for the previous seven years, of the Fotocasa real estate index.
But this average price is very low if we compare it with those of some neighborhoods in Barcelona, ​​since car parks become more expensive in large cities. In Les Corts the average price was 95 euros per month in 2021; in Sants-Montjuïc, 92 euros per month, on average, and in Sant MartÃ, 91 euros per month, to give some examples.
According to Natalia de Santiago, there are some aspects to take into account so as not to go bankrupt with the car.
This article was originally published on RAC1.
