If you are thinking about buying a car then of course, finances will be one of the biggest things on your mind in terms of which car you will be buying. This is of course important but you must also bear in mind all of the additional expenses which come with owning a car. This is particularly important if you are thinking about taking the car on finance with monthly payments, and you will have to factor in the additional expenses into your budget to work out what kind of car you can afford to buy. Let’s take a look at just some of the expenses which you can be looking at each month.
The biggest expense, aside from a finance repayment if you opt for that choice, is going to be the amount of gas which you put into the car each month. The gas prices are regularly fluctuating so it would be difficult to give you an idea of how much you’ll spend, it is of course dependant on how many miles you rack up too. Most people spend a minimum of $100 each month on their gas, and you should use this as a rule of thumb when buying your car.
Car insurance is obligatory and you must make sure that you are doing all that you can to find the best price on car insurance available. Before you buy a car for the first time, get an insurance quote to get an idea of the rates which you could be looking at, so that you can factor it in to your budget. Car insurance varies in price based on the personal details of the driver as well as the type of car which you are insuring so getting a quote early can help you to decide what kind of car you buy.
Parts and Repairs
There is absolutely no telling when a car may break down or need repairs and whilst new cars may or may not be covered by warranty, even this doesn’t offer you complete protection. With that in mind then you will always need to make sure that you have some money saved in case the worst should happen. Most people struggle to live without their car and if something should go wrong with yours, and you don’t have the money to pay to have it fixed, you could be in deep water. You must consider the worst case scenario when you own a car and this is why savings are very important.
Additional, and optional costs include, cleaning costs, in-car gadgets, parking fees and winter essentials such as tires and anti-frost if they are needed. You may also have to occasionally refill the oil and brake fluids, as well as screen wash in the car.
All told, paying for a car is about far more than simply handing over a cheque and driving away from the forecourt and you must keep all of this in mind before deciding which car is for you.