A vehicle is perhaps your second largest investment that you are ever going to make in your life after your house. Since it is a huge decision, a lot many factors have to be considered and these elements mainly rotate around the expenditure that will be incurred upon you; and not just the preliminary cost of the car, but all the regular and expected costs that are going to come with it.
Of course if this is your first car then it is very likely that you think your expenditures end with that hefty lump sum payment. Sorry, to have to be the one to burst your bubble, but this is only the first of the car related expenses to expect; there is a long line of expenses that follow soon afterwards.
Registration, Tax and Insurance Costs
It is quite often that prospective buyers overlook the insurance costs even though purchasing an insurance is compulsory (at least third party insurance) in every single state. You cannot drive a car on the road and you cannot have it registered, even if you have a license, without having insurance. The registration, tax deduction and insurance will mostly depend upon the type of the car and your credit etc.
If you add extra coverage to the basic insurance policy to protect yourself and your car, then you can add those extra costs too. However, at an average you can expect it to be well above $1500 annually. But the insurance costs can vary depending upon a variety of things; for example a few of the important ones include the type of cover, the age of the driver, the age of the car, driving record, condition of the car, cost of the car and of course the safety features that have been added to it.
Costs of Fuel and Loan Repayments
You can’t run your car without fuel and with the fluctuating prices of fuel, you will have to budget your weekly or monthly fuel expenditure by keeping a little above the average expected.
What you should also include in your monthly budgeting are the loan repayments if you have purchased the car with 0% annual percentage rate (APR) which is sadly becoming the order of the day. So if the other additional costs weren’t enough for you, add loan repayments as well to add-on costs of your first car.
Maintenance and Repair
A car is a mechanical object, with top of the line technology infused into it to make your driving experience all the more enjoyable and convenient. Brake pads can be one of the cheapest components to change but the prices can still add up! Most of the cars that have been built in the last 5 years are loaded with safety features that literally tell you what you need to know about your car and when you need to know it and extras like auto window tinting can really assist in cooling. Tinting a car’s windows typically costs $100-$150, but you can find specific details and learn more about the process at Window Tinting Prices Data. But every installed item has its own lifetime and your car manual will tell you when to expect a replacement of some of these items.