Owning a car is a significant convenience, offering freedom and mobility. However, the financial responsibilities that come with it are often underestimated. Beyond the initial purchase price, there are numerous ongoing costs that can add up, including insurance, maintenance, and roadside assistance. In this article, we'll take a closer look at these expenses.

1. Insurance Premiums

One of the most significant costs of car ownership is insurance. The premium can vary widely based on factors such as the driver's age, driving history, and the type of car.  For new or young drivers, insurance premiums can be especially high, averaging around RM2,000 to RM3,000 per year.

2. Maintenance and Repairs

Regular maintenance is essential to keep a car running smoothly and avoid costly repairs. From oil changes to brake replacements, these costs can add up over time, particularly for older vehicles or those with complex systems, averaging around RM1,000 to RM2,000 per year.

3. Roadside Assistance

Breakdowns and emergencies can happen unexpectedly, and having reliable roadside assistance is crucial. Membership fees for programs like Allianz Road Rangers or RAC Malaysia can range from RM100 to RM300 per year.

4. Depreciation

Cars depreciate in value over time, with some models losing up to 20% of their value in the first year alone. This depreciation can result in a significant loss if you decide to sell your car in the future, averaging around RM5,000 to RM10,000 per year.

5. Car Loans

Though buying a car with cash isn’t entirely impossible, most people choose to finance their car by taking out an auto loan. You could reduce the overall payment due by pumping in more for your down payment because then you’ll need to borrow less money and pay less interest. The longer your loan period, the lower your monthly payment, but it also means you’ll pay more in total interest.

Estimate cost of owning a car

Car Subscription as an Alternative

Car subscriptions offer an alternative to traditional car ownership, providing access to a vehicle without the financial and logistical burdens. With a car subscription, you pay a monthly fee that covers all the major costs of car ownership, including insurance, maintenance, and roadside assistance.

1. Cost-Effectiveness

Car subscriptions can be more cost-effective than traditional ownership, especially for those who don't drive frequently or need access to different types of vehicles. The monthly fee is often comparable to a car payment and includes all the essential services, making budgeting easier.

2. Convenience

Car subscriptions offer a high level of convenience, with many providers offering flexible terms and the ability to swap vehicles as needed. This flexibility is especially beneficial for those who may need a different type of vehicle for a specific occasion or lifestyle change.

FLUX Subscription

Owning a car can cost between RM8,100 to RM15,300 per year, depending on various factors. The cheapest FLUX subscription costs RM8,850 per year. In this comparison, owning a car can easily be comparable to the cheapest FLUX subscription. If you're tired of the financial and logistical burdens of traditional car ownership, consider a car subscription service like FLUX. With FLUX, all your maintenance needs are taken care of, from regular servicing to unexpected repairs. Say goodbye to the stress of scheduling appointments and dealing with paperwork – FLUX handles it all for you, so you can enjoy the peace of mind knowing that your car is in good hands. Explore FLUX today and experience the ultimate convenience of car ownership without the hassle!

For more information on FLUX and its car subscription services, visit www.driveflux.com.