In Hong Kong, regardless of the good comfort public transport has dropped at our lives, proudly owning a automobile instead technique of transportation is however an irreplaceable expertise in the case of superiority, consolation and comfort. Nonetheless, various automobile junkies have stepped again from changing into a “automobile proprietor” because of the immense price for operating a automobile reminiscent of parking price, insurance coverage, gas, and license payment along with the price range for getting a automobile.
Many automobile house owners search for methods to cut back the price of operating a automobile in Hong Kong. To take action, you could first perceive the several types of expense. In at the moment’s particular lecture of INO, our specialists will talk about the most typical bills for operating a automobile and counsel methods to assist automobile house owners to cut back price.
Automobile Park Fees
Because of the scarcity of land and pattern of hypothesis in Hong Kong, automobile park costs are certainly not low-cost. The hourly parking price in an HA’s property is round HK$13 to HK$17, whereas that from Hyperlink REIT is greater than HK$17. The hourly parking price in massive procuring malls ranges from HK$20 to HK$25. In common areas reminiscent of Causeway Bay or Tsim Sha Tsui, the hourly parking price usually exceeds HK$30. When parking on holidays, the hourly parking price of some procuring malls may be as excessive as HK$70.
However, the month-to-month price will not be as inexpensive as you assume. The month-to-month price of an HA’s automobile park is marked by the occupancy price and district space, which additionally improve yearly. As proven within the knowledge supplied by HA, the present month-to-month automobile park cost is as much as HK$3,000 for lined areas with 90% or above occupancy charges in Hong Kong and Kowloon. Comparable areas in Tuen Mun, Yuen Lengthy, Tin Shui Wai, Tung Chung and Islands are comparatively cheaper, with a price of HK$1,640.
Month-to-month automobile park costs below Hyperlink REIT and personal housing estates in numerous districts can differ enormously. Month-to-month rents in Hong Kong Island and Kowloon are costlier than that within the New Territories. Nearly all of automobile parks in massive housing estates with inadequate parking areas cost between HK$3,000 and HK$3,800.
Automobile Insurance coverage
In keeping with the legal guidelines of Hong Kong, third-party insurance coverage should be supplied for all automobiles utilizing the roads by the driving force, the place offenders may be fined HK$10,000 and imprisoned for 12 months. Though third-party insurance coverage is cheaper than complete insurance coverage, it gives much less protection to your car, which solely protects the rights and pursuits of third events as a substitute of offering safety for the insured driver and the car itself.
The premium of automobile insurance coverage is affected by a basket of things starting from the market worth, efficiency, driver’s driving report, driving expertise, age, occupation, compensation report and site visitors violation report of the car. Whether or not the driving force itself has NCD or whether or not the insurance coverage has deductibles and extra may even have an effect on the premium. For extra data, you possibly can check with ‘automobile insurance coverage expense: how the insurance coverage firm calculates your premium?’ and ‘7 methods to economize on automobile insurance coverage in Hong Kong’.
Proceed studying: There’s extra to automobile insurance coverage than complete and third-party automobile insurance coverage
Gas Expense
Hong Kong is among the most costly cities on the planet for gas. Though gas costs have plummeted not too long ago, Hong Kong’s gas worth has not modified considerably. On the time of writing this text (Could seventh, 2020), the gas worth per litre was HK$13.40.
If you want to economize on petrol, one of many methods is to drive a automobile with low gas consumption reminiscent of diesel / electrical / hybrid car, however the worth of those varieties of car is barely larger than the petrol counterparts. Earlier than shopping for the car, it is strongly recommended to find out whether or not you possibly can cowl the associated fee, i.e. whether or not you’ll drive this automobile for a time period in order that the gas financial savings can compensate for the distinction within the worth of the car.
As well as, driving behavior is one other issue affecting gas consumption. If a driver often goes dashing, rides the brakes, or retains the air conditioner on, extra gas can be consumed. Subsequently, it’s extra fuel-efficient to drive on unobstructed highways than in city areas the place drivers at all times have to cease by the site visitors lights.
Because the car will get older, particularly for second-hand automobiles, issues might come up simply and the restore payment normally goes larger.
Along with the restore payment within the occasion of an surprising breakdown, a car usually requires inspections each 6 months or about 5,000 km (whichever comes earlier) and substitute of consumables reminiscent of gas, gas filter, air filter, and air-conditioning filter. Topic to the car model and mannequin, the storage payment is mostly HK$1,500 to HK$2,000; new automobiles normally have bought the official guarantee, and the common payment is HK$3,000 to HK$6,000 per time.
The federal government additionally implements obligatory annual car examination for personal automobiles aged six years or above. The license can solely be renewed upon passing the examination. The car examination payment by the federal government is HK$585, whereas a lot of the garages out there supply from HK$2,500 to HK$4,000 with one-stop service for fundamental restore and examination dealing with topic to the car mannequin, engine capability and examination scope.
Car upkeep prices 1000’s of {dollars} yearly. If you wish to lower your expenses by suspending and even skipping examination and upkeep, the lifespan of the components could also be shortened, triggering issues of vital components reminiscent of engines and gearboxes and even pose a hazard to secure driving. Subsequently, it could be higher to save lots of a little bit extra in different elements moderately than on upkeep and restore. In any case, the sport will not be definitely worth the candle.
License Price
Beneath the necessities of the prevailing laws in Hong Kong, drivers of all automobiles utilizing the roads should pay for the license payment with an possibility for yearly cost or as soon as each 4 months. However when you go for the latter, the full price can be larger. In consequence, the driving force who is bound to proceed utilizing the car normally chooses to resume the license yearly to save lots of extra.
The license payment of a non-public automobile is dependent upon the usage of petrol or mild diesel and the scale of the engine capability. The bigger the capability, the upper the associated fee and vice versa. Whereas the license payment for electrical automobiles is decided by the car’s web weight.
In keeping with the annual Finances 2021, the registration taxes and annual license charges have been elevated by 15% and 30% respectively, efficient on 24 February.
For petrol automobiles, the annual license payment ranges from HK$5,074 to HK$14,694, and the 4-month license payment ranges from HK$1,804 to HK$5,171.
For mild diesel automobiles, the annual license payment ranges from HK$6,972 to HK$16,592 and the 4-month license payment ranges from HK$2,469 to HK$5,836.
If drivers renew their car licenses of personal automobiles or electrically powered passenger automobiles which expire on or earlier than June 23, 2021, so long as the renewal software is submitted on or earlier than June 23, 2021, can proceed to pay the unique annual license charges earlier than the adjustment.
If drivers renew the car licenses of personal automobiles and electrically powered passenger automobiles which expire on or after June 24, 2021, or submit functions for first or re-issue of car licenses of personal automobiles or electrically powered passenger automobiles at or after 11 am (Hong Kong time) of February 24, 2021, they need to pay the adjusted annual license charges.
To know extra about license charges, you possibly can check out ‘A information to registering and licensing automobiles in Hong Kong’ or click on right here for extra data from the Transport Division.
Proceed studying: Automobile license renewal 101: software course of, charges, and paperwork
Contact INO to Examine Automobile Insurance coverage Insurance policies
In conclusion, the price of operating a automobile in Hong Kong is undoubtedly excessive, however so long as you know the way to economize, you possibly can nonetheless save so much in some elements reminiscent of car insurance coverage. Along with the above suggestions, an important factor is to search out an skilled and dependable car dealer to advise you on a plan that meets your necessities and price range.
Contact us now at no cost automobile insurance coverage citation!
