Buying a car: hidden costs you didn't know about

Buying a car in 2025 seems like a simple step, but hidden auto costs can significantly increase the final cost of ownership. Beyond the obvious costs like the price of the car and insurance, there are plenty of additional costs that can catch you off guard. From taxes and fees to unexpected repairs and value drops, these costs can turn your dream of a new car into a financial burden. In this article, I'll break down in detail what hidden auto costs are worth considering so you can plan your budget and avoid unpleasant surprises.

Consider taxes and fees when purchasing

When buying a car, many people forget about the taxes and fees that are added to the cost of the car. In Russia in 2025 you will have to pay transport tax, which depends on the engine capacity. For example, for a car with a 150 hp engine, the tax can be about 7-10 thousand rubles a year in Moscow. In addition, when registering with the traffic police, you will pay a state duty - about 2-3 thousand roubles. These additional car expenses may seem insignificant, but they accumulate, especially if you buy a car on credit.

Don't forget the recycling fee

Utilisation fee is another cost item that is often forgotten. This payment is compulsory for all new cars and depends on the engine size and year of manufacture. For example, for a car with a 2.0 litre engine, the fee may amount to 50-100 thousand roubles. If you buy a car from a private person, this fee is already included in the price, but when you buy a new car in a salon, it is added separately. The disposal fee is one of the hidden costs of a car, which can significantly affect your budget.

Estimate insurance costs

Insurance is a mandatory part of car ownership, but its cost can come as a surprise. MTPL insurance in 2025 for an average car will cost 8-15 thousand roubles a year, depending on the region and the driver's experience. If you want extra protection, CASCO will add another 20-50 thousand rubles annually. For example, for a new crossover, the cost of KASKO can reach 70 thousand rubles. These hidden costs of car ownership are often underestimated, especially if you buy an expensive model where insurance is more expensive.

Consider the rising cost of insurance over time

The cost of insurance can increase each year due to inflation, rate changes and your driving record. If you have an accident, even a small one, the insurance company may increase the coefficient, which will increase the cost of the policy for the next year. For example, after a minor accident, your MTPL insurance may go up by 20-30%. Moreover, if you take a car on credit, the bank may oblige you to take out a CASCO, which also increases unexpected expenses on the car. Take these factors into account to avoid financial surprises.

Think about maintenance costs

Car maintenance is one of the most significant hidden costs. Regular maintenance, replacement of oil, filters and brake pads require constant investment. For example, one TO for a medium-sized car, such as Hyundai Creta, will cost 10-15 thousand rubles every 15 thousand kilometres. If you drive 20 thousand kilometres a year, it is already 20-30 thousand rubles. In addition, the wear and tear of parts such as tyres or battery also adds to the hidden costs of the car, especially if you have not accounted for these expenses in advance.

Consider the cost of unexpected repairs

Unexpected repairs can be a real headache. Even a new car may require repair due to a factory defect or bad roads. For example, replacing the suspension after driving over potholes in the Moscow suburbs can cost 30-50 thousand roubles. If you do not have a warranty, all costs fall on you. Moreover, spare parts for foreign cars in 2025 can be expensive due to logistical problems. These unexpected car costs often come as a surprise to new owners, especially if they have not laid down a spare budget.

Calculate the drop in the value of the car

Falling car value is one of the most underestimated factors when buying a car. In the first three years, a car loses 30-50% of its value. For example, if you bought a car for 2 million roubles, after three years its market price can fall to 1-1.2 million. This is especially true for premium brands, which depreciate faster. The fall in value is the hidden cost of the car, which shows up when you decide to sell the car, and often shocks owners.

Think about the impact of mileage on price

The more you drive, the more the value of the car drops. For example, a car with 100,000 kilometres on it will be worth much less than one with 30,000 kilometres on it. If you use the car for work, for example, in a taxi, its value will fall even faster. In addition, buyers in the secondary market pay attention to the condition of the car, and any defects lower the price. These additional car costs are related to how you use the car and how that affects its market value.

Consider fuel and parking costs

Fuel and parking costs are often underestimated when buying a car. In 2025, the average price of petrol in Russia is about 55 roubles per litre. If your car consumes 8 litres per 100 kilometres and you drive 15,000 kilometres a year, it will cost about 66,000 roubles for fuel. Parking in large cities such as Moscow adds another 50-100 thousand rubles a year if you regularly leave your car in the centre. These hidden car expenses can significantly increase the total cost of ownership.

Calculate the costs of toll roads

If you often drive on toll roads, this also increases costs. For example, travelling along the M11 Moscow-St. Petersburg motorway for a passenger car costs about 2,000 roubles one way. If you travel several times a year, this adds another 10-15 thousand roubles to your expenses. In addition, some cities introduce paid entry zones, which also increases unforeseen car expenses. Take these costs into account if you plan frequent trips out of town.

Think about additional accessories

Many car owners buy additional accessories such as mats, video recorders, seat covers or roof racks. These purchases may seem insignificant, but they add up to a significant cost. For example, a set of interior mats will cost 3-5 thousand rubles, and a good video recorder will cost 10-15 thousand. If you want to improve comfort, such as installing a parktronic, it is another 20-30 thousand rubles. These hidden costs of car ownership are often not taken into account when planning the budget.

Consider the cost of children and pets

If you have children or pets, owning a car may require additional investments. For example, a child car seat for a baby will cost 10-20 thousand roubles, and a special curtain to protect the interior from animal hair - another 2-3 thousand. Moreover, frequent journeys with children can lead to wear and tear of the interior, which will require cleaning or repair. These additional car expenses often go unnoticed, but over time they accumulate.

Consider alternative ownership options

If the hidden costs of a car seem too high, consider alternatives such as leasing or carsharing. Leasing allows you to use the car for a fixed monthly fee, and maintenance and insurance are often included in the price. Carsharing, on the other hand, gets rid of all the costs of ownership, as you only pay for the time you use it. For example, in Moscow, renting a car through Yandex.Drive will cost 5-10 rubles per minute. These options can help minimise the hidden costs of a car.

Compare to renting to save money

Renting a car can be more favourable if you don't plan to drive every day. For example, renting a car by day costs 2-3 thousand roubles on average, which is much cheaper than the annual cost of ownership. If you only use the car on weekends, renting can save you up to 100 thousand roubles a year. Comparing it to renting allows you to understand what unexpected car costs you can avoid by choosing a more flexible option.

Conclusion: plan your budget with all costs in mind

Hidden auto costs in 2025 can put a serious strain on your budget if you don't account for them in advance. Taxes, insurance, maintenance, falling values, fuel, parking and additional accessories all add to the overall cost of car ownership. To avoid financial surprises, carefully calculate every possible expense, think about the long-term implications and consider alternatives such as leasing or carsharing. With the right approach, you can enjoy your car without overpaying for hidden costs.