Just bought a new car? Explained how 5 money mistakes may push up ownership costs and strain your monthly vehicle budget

Stretching your budget, ignoring insurance renewals, skipping servicing: 5 money mistakes new car owners should avoid to keep ownership costs in check.

Buying a new car is a significant financial commitment, and the expenses don’t end with the down payment or equated monthly instalments (EMIs). Fuel, insurance, servicing and other recurring costs add up quickly, and small financial mistakes can make ownership more expensive and strain your household budget.

Understanding the basics and planning ahead can help you avoid repayment delays or defaults that complicate car ownership. Here are five money mistakes new car owners should avoid.

Here are five money mistakes new car owners should avoid to ensure car ownership remains a pleasant experience.

5 money mistakes that can increase car ownership costs

I. Stretching your budget to buy a car

Choosing a pricier variant or model than you can comfortably afford leaves little room for savings and household expenses. Car purchase decisions should be driven by your actual usage, not emotion. Factor in the EMI, running costs and existing financial commitments before fixing your budget.

II. Ignoring insurance renewal costs