Car Costs 🚗
Buying your first car is an exciting milestone but also a significant expense. Before you purchase a car, it is wise to determine the maximum price you are willing to pay. Prices vary greatly depending on the brand, year of manufacture, mileage, condition, fuel type, and features (like cruise control, heated seats, or built-in navigation).
Monthly Expenses 🗓️
When buying your first car, remember that the purchase price is just the beginning. Recurring monthly costs include car insurance and road tax.
Car Insurance
The cost of car insurance depends on several factors, including the type of insurance, the car’s age and value, the driver’s age and location, and any no-claims bonus (discount for accident-free years).
There are three types of car insurance in The Netherlands:
- Third-Party Liability Insurance (WA) This insurance only covers damage you cause to others. It offers limited coverage and is the most affordable option.
- Third-Party, Fire, and Theft (WA+) This insurance covers more than third-party liability. It also protects against damage caused by theft, burglary, fire, storms, and window damage.
- Comprehensive Insurance (All-Risk) As the name suggests, all-risk insurance covers nearly everything: damage you cause to others, vandalism, and even damage to your own car—even if it is your fault. However, the premium is higher due to the broader coverage.
Insurance Premiums
The cost of your insurance premium depends on various factors. Therefore, it is smart to compare different policies and providers.For example: If you buy a car that originally cost €20,000 new and have not built up claim-free years (since it is your first car), here are the approximate monthly premiums:
- WA Insurance: €50–€70
- WA+ Insurance: €70–€100
- All-Risk Insurance: €100–€150
Road Tax 🛣️
In addition to car insurance, you must pay road tax if you own a car. This tax funds road construction and infrastructure. The amount you pay depends on:
- ⚖️ Vehicle Weight: Heavier vehicles incur higher taxes.
- 🔋 Fuel Type: More sustainable vehicles are taxed less.
- 🏡 Location: Provinces can set their own road tax rates, so costs vary depending on where you live.
Expect to pay between €25 and €75 per month in road tax.
Other Costs
In addition to insurance and road tax, there are other expenses to keep in mind. Regular maintenance is key to keeping your car running smoothly.
- Minor Service (annually): Includes oil changes, filter replacements, and checks on tires and lights. Costs range from €100 to €150 (excluding repair costs).
- Major Service (every two years): Includes additional checks on coolant, timing belts, and other key components. Costs range from €200 to €600.
MOT Inspection (APK): Older cars require an annual MOT inspection to ensure they meet safety and environmental standards. MOT costs range from €20 to €70, so comparing prices is worth it.
Additional costs to keep in mind:
- Fuel ⛽: Costs depend on driving habits and car efficiency.
- Toll 🪙: Some roads require toll payments (common in France and parts of the Netherlands).
- Parking Fees 🅿️: Not all parking is free, especially in cities.
- Parking Permit 📃: If you live in a city, you may need to apply for a parking permit. Costs vary by municipality and neighborhood.
- Traffic Fines ❌: Penalties can be expensive (e.g., running a red light costs €300, driving 10 km/h over the limit in urban areas costs €90, and not wearing a seatbelt costs €180).
Grassfeld Helps You Plan and Track Expenses
Planning to buy your first car? Grassfeld can help you achieve this exciting goal and track your car’s monthly costs after purchase. With Grassfeld’s free app, you can easily set a savings goal to see how much and how long you need to save before buying your first car. By linking your bank account, the app also categorizes your transactions automatically, so you can track your car expenses every month.
Download the Grassfeld app now from your app store!
