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How Much Does It Really Cost to Own a Car? 4 Easily Forgotten Things When Budgeting

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One of the first steps towards owning your very own car is looking at your budget and deciding what you can really afford to spend. Many people these days look at the price of the car and assume that is the only price they need to take into consideration. This is unfortunately not the case. Below you will find some more things you need to think about when purchasing a car.

4 Other Things You Need to Take into Account When Buying a Car

  1. 1

    When looking to buy a car you must include multiple associated expenses. One obvious expense is the cost of filling your tank with gasoline. According to the U.S. Energy Information Administration, the average price of regular-grade gasoline for January and October 2017 is $2.30 per gallon and $2.65. Buyers should calculate a budget for gas by looking at the average number of miles they will drive per week and the average price of gasoline. Here is a simple guide for calculating your gas mileage:

  2. 2

    Another cost the buyers need to factor into a budget is car insurance. Car insurance rates vary depending on age and other factors. Policies range in price and months of coverage so it is important to do your research and choose the best policy for you. The following video gives you an idea how insurance companies calculate your premium.

  3. 3

    Aside from insurance and gasoline, there are additional costs that might not come directly to mind. Some of these include state and local taxes, state licensing fees, and maintenance and repair costs. Some of these costs are easily predictable but others are not. Buyers should make sure that they have enough money available for any potential unscheduled maintenance costs. Also, though parking and driving tickets should be minimal, drivers should also have enough capital to pay for these as well.

    parking violation
    Parking tickets in major US cities can be seriously painful reaching $200 in several places across the country

  4. 4

    Owning your own car is a big responsibility and must be approached in a responsible and well thought out manner. When dealing with purchasing vehicles and driving vehicles, it is better to be overly prepared and cautious than not. These are final considerations while budgeting for a car purchase.

Sources:

AAA, Cost of Owning and Operating Vehicle in U.S. Increases Nearly Two Percent According to AAA’s 2014 ‘Your Driving Costs’ Study

Cars Direct, The Average Car Insurance Rates by Age.

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