9 Expenses You Need to Be Ready For as a Car Owner

For many Filipinos, car ownership has long meant the freedom to go wherever you need to go, whenever you want. But as necessary as cars can sometimes be, they are often among the most expensive acquisitions a typical middle-class Filipino can make, just behind housing.

Like houses, cars are often a long-term financial commitment. Many car owners plan to own their cars for at least 10 years, if not significantly longer than that. In that time, cars can stretch budgets in ways even seasoned owners may not fully anticipate. If you’re a first-time car owner, it’s almost certainly going to be more expensive than you expected at first.

From fuel costs to unforeseen repairs, the costs of car ownership just keep coming. With that in mind, getting a clear picture of your most likely expenses is just good common sense. Here are the key expenses you must prepare for when you buy a car.

1. Car Loans and Financing

If you’re like the vast majority of car owners, you probably didn’t buy your car outright. If so, your monthly amortization is probably one of your highest fixed costs. Even if you’ve managed to pay off the down payment, you still need to deal with financing. Carefully choosing car loans that minimize impacts on your long-term budget ensures that you keep the other car-related costs on this list well under control.

2. Energy Costs That Keep Rising

While increasing energy prices are a bigger concern for traditional vehicle owners, they also affect electric vehicle owners. For various macroeconomic reasons, energy price fluctuations are common in the Philippines, and global market shifts can quickly push pump and EV charging prices higher than you’re expecting. If you’re commuting daily, these costs can easily exceed several thousand pesos per month, making this basic cost a cornerstone of any car owner’s budget.

For electric vehicles, it may be more practical to have a charging station at home. The initial cost can be high, but you can easily cover it with reasonable loans from Maya. You can borrow up to Php 250,000, which you can pay for up to 24 months. The add-on rate is also reasonable at 0.77% per month. Check with your dealer or a reputable provider for a ballpark estimate, so that you can apply for the right amount for your Maya Personal Loan.

3. Regular Maintenance and Servicing

Cars are so reliable these days that drivers often put off oil changes and tune-ups. Unfortunately, delaying maintenance for months on end will often result in you losing money rather than saving it. Whether you’re driving a traditional vehicle, an EV, or a hybrid, preventive maintenance extends your vehicle’s life and keeps it performing safely. If you’re serious about savings, plan to shell out for regular oil changes, brake checks, tire rotations, and periodic diagnostics.

4. Repairs Beyond Routine Care

There’s no question that routine maintenance is important. Even so, unexpected breakdowns still happen. Cars are incredibly complex machines, and it’s not unusual to experience such things as transmission issues, electrical problems, or even air-conditioning failures. Likewise, you can’t always control road conditions, so you may have to deal with occasional fender-benders, if not more serious accidents.

When these happen, bills can cost thousands to tens of thousands of pesos, if not hundreds. Having a cushion for these surprises is critical, since you can’t exactly postpone some kinds of repairs without risking your car or your safety.

5. Car Insurance Premiums

Speaking of financial cushions, this is another area that a lot of new car owners fail to consider. While comprehensive insurance isn’t legally required for all vehicles, it’s almost foolish to skip it, considering how expensive even a secondhand car can be. Good coverage protects you against theft, damage, or liability costs that could otherwise overwhelm your budget. This one expense, while sometimes technically optional, is worth prioritizing for your peace of mind.

6. Registration and Miscellaneous Government Fees

Your annual Land Transportation Office (LTO) registration can involve emissions testing, various fees, and sometimes penalties if you forget deadlines. These costs might feel routine, but they will add up if you own multiple vehicles or if you’re caught unprepared.

7. Parking Expenses

If you live in or commute to dense urban areas like Metro Manila, parking is seldom free. Not only do you have to factor in the cost of owning and maintaining a home parking space, but you also have to shell out for paid parking every time you venture out. Whether it’s monthly parking at your office or occasional overnight stays in secured facilities, these charges accumulate quickly. If you live or work in an exclusive area, chances are parking may even exceed your fuel or charging expenses.

8. Tolls on Expressways

If you live in the suburbs of Metro Manila, regular trips on SLEX, NLEX, or Skyway can add thousands of pesos per month to your transportation budget. With electronic toll collection becoming the norm, these charges are easy to overlook until they show up as a significant monthly total.

9. Accessories and Upgrades

You’re probably going to be spending a lot of time in your car, so it makes sense you’ll want to trick it out for your comfort and safety. Upgrades like dashcams to help with insurance disputes, seat covers for better comfort, and entertainment systems to keep your passengers occupied can all be worthwhile for many car owners.

Still, these upgrades are not strictly necessary. It’s wise to treat these as nice-to-haves unless they solve a very specific problem for you. Don’t upgrade all at once in the beginning, and keep driving your car as-is for a couple of months. When you’ve gotten into the groove of daily driving, you can finally consider putting out cash for targeted, quality upgrades.

A New Car Shouldn’t Steer Your Finances Off-Track

Financially speaking, a car is always going to be much more than a one-time purchase. Even if it just sits in your garage for half the week, it will still create a steady stream of expenses that require planning. Being ready for all these will allow you to enjoy the benefits of car ownership without being blindsided by the many costs. 

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• What Buyers Actually Look For When They're Considering Your Car
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