Diwali car shopping? 5 extra costs beyond EMI that could burn a hole in your pocket
Buying a new car during Diwali often comes with festive discounts, exchange bonuses and attractive financing offers. However, the initial payment is only the beginning of car ownership costs. Once the vehicle hits the road, owners must also account for recurring expenses such as insurance renewals, fuel, servicing, parking and unexpected repairs.
While buyers generally factor in the ex-showroom price, down payment and monthly loan instalments before purchasing a vehicle, several additional costs can affect their monthly budgets. These expenses may appear small individually but can add up significantly over the years.
Fuel is among the most frequent expenses that car owners encounter after taking delivery. Daily office commutes, weekend outings, shopping trips and long-distance journeys can quickly increase monthly spending.
The actual cost depends on how frequently the vehicle is used, its fuel efficiency, driving conditions and prevailing petrol or diesel prices. Stop-and-go traffic in congested cities can also affect mileage.
Buyers should estimate their monthly fuel consumption based on their expected driving distance rather than relying solely on the mileage figures advertised by manufacturers.
New car buyers are often attracted by complimentary servicing packages offered by manufacturers and dealerships. However, free services do not necessarily cover every maintenance requirement.
Expenses related to consumables, wheel alignment, wheel balancing and certain replacement components may still have to be paid for separately.
As the vehicle gets older, owners may also have to spend on engine oil, filters, brake components and other parts. Once complimentary service benefits expire, routine maintenance becomes an additional financial responsibility.
Following the manufacturer's recommended service schedule can help owners identify problems early and avoid potentially expensive repairs later.
Insurance is another expense that buyers need to plan for beyond the initial purchase. Although the first year's insurance is generally included in the on-road price, owners must pay renewal premiums to maintain coverage.
The renewal amount can vary depending on the vehicle's model, insured declared value (IDV), selected coverage, add-on benefits and claims history.
Owners should compare available policies before renewing rather than automatically accepting the first renewal quote. They should also understand the difference between third-party insurance, which is mandatory, and comprehensive insurance, which offers broader protection against damage to the insured vehicle.
Even a new vehicle is not entirely immune to unexpected expenses. A punctured tyre, accidental damage to the bumper, a damaged component or a battery replacement can lead to unplanned expenditure.
Tyres and batteries also have a limited lifespan and eventually require replacement, depending on usage, road conditions and maintenance.
Accidental damage can result in additional repair bills, while insurance claims may involve deductibles or other out-of-pocket expenses. Keeping an emergency fund for vehicle-related repairs can help owners manage such costs without disturbing their regular monthly budgets
Parking is another cost that buyers sometimes overlook while calculating the affordability of a new vehicle.
People living in apartment complexes without designated parking spaces may have to rent a parking spot separately. Office parking fees and charges at shopping centres, commercial establishments and other public locations can further increase expenses.
Highway tolls also add to the cost of travelling, particularly for people who frequently drive between cities. Although individual parking and toll payments may appear insignificant, their cumulative impact can be considerable over a year.
Apart from these five expenses, buyers should also consider depreciation, the loss in a vehicle's resale value over time. A car's purchase price does not represent the amount its owner can recover when selling it several years later.
Financial planning for a new car should therefore go beyond the down payment and monthly loan instalment. Estimating fuel, insurance, servicing, parking, tolls and repair costs can provide a more realistic picture of the total ownership expense.
Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X
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