The real cost of cars
There are a few options when buying a car. You can buy one brand new or second hand (used). You can buy a luxury car or even an EV (electric vehicle)! The family car needs to be a safe, reliable vehicle and Kai knows that cars cost money to keep on the road. He goes to the car yards with his family on the weekends and sees the huge purchase costs but he isn't sure how much it costs to actually keep a car running. Kai’s family is considering buying a used car or if possible a brand new car without using loans.
Use the car calculator to investigate the cost of purchasing and running a new car versus a used car. You can see how much it costs to run the car each fortnight, and how much the total cost of owning the car will be for one, five or even ten years.
Make sure to note the total costs for each car for the year because you will use these figures in the next task.
The default setting is $8,000 for used cars because this is what most people pay for a second hand car - but you can buy a car cheaper than that if you’re happy to make some compromises.
Food for thought
Were you surprised at some of these costs? Do you think owning a certain type of vehicle will affect the cost of ownership? Some used cars are cheaper than others, what do you think causes this?
Are running costs more expensive for used cars? Why? Does this still make them cheaper than new cars?
At home
Do you have a vehicle in your family? Perhaps someone in your family has a vehicle they use for work. What kind of costs are involved in running these vehicles?
