Owning a car in Nigeria or in any part of the world is more than just the upfront payment. After that, you still have to spend on your car. The true monthly cost of owning a car depends on several factors and expenses that you will incur on a monthly basis after your initial purchase of the car.
Before buying a car, these monthly expenses should be considered.
Some of these factors that would determine the monthly expenses incurred for owning a car include insurance, cost of fuel, cost of maintenance, etc. We will look at each of them in the course of this article.
Insurance
Car insurance is something that cannot be overlooked. It is very important. The least insurance that is allowed for a car user in Nigeria is third-party insurance. However, it is advisable to get general insurance. The third-party insurance cost ranges from 5000 naira to 15000 naira monthly, while general insurance is slightly more expensive.
Fuel
The price of fuel today is about 1300 naira per litre. Fuel is the most important part of a car because you need to fuel your car to be able to commute. Calculating the amount you spend on fuel monthly would almost help in determining the total cost of how much your car would cost monthly. Note that the type of car you have would determine how much you’d spend on fuel too. Some cars are more fuel efficient and thus save more fuel than others, depending on the engine type. Generally, normal sedans are more fuel-efficient than SUVs. But an average Nigerian is said to spend about 30 thousand naira on fuel monthly.
Cost of Maintenance
According to a report made by Hephzibah Iniodu, Chief of Staff at Cardio Autotech, he said: “Nigerian car users spend an average of N824,000, based on the current exchange rate of N1267 to a dollar, yearly to maintain a car, with the figure anticipated to surge due to the escalating prices of components and service charges within the automotive sector.” Using these statistics, it can be deduced that Nigerian car users spend an average of 68 thousand naira monthly on car maintenance. This price varies depending on the car model and the driver involved.
Conclusion
The exact monthly cost of owning an affordable car cannot be exactly stated as it differs with different cars. However, going through this article and following each step would help determine the specific cost of your own car. Understanding the full cost of ownership helps buyers make better financial decisions and maintain a more predictable budget.
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