If you’ve never owned a car before, chances are you have some pretty high expectations. You have the perfect dream-car picked out, and you know exactly how you’re going to accessorize it. But before you get ahead of yourself with window shopping, one thing you should know is that there are hidden costs to owning a car. Finance Expert Kevin Mercadante suggests that “Owning a car is expensive… so much so that owning the wrong type of car for your lifestyle can drain your bank account quickly. Paying close attention to how much your vehicle costs also presents an opportunity — buy and own a car the smart way, and you could save a lot of money each year.” Here are a few hidden costs that come with car-ownership:
1. New Tires:
No matter how carefully you choose to drive, it’s inevitable that you’ll need to replace your tires at one point or another. It could be because of a flat tire, or just because of wear and tear. As soon as you purchase a vehicle, do some research on what it would take to replace the tires, and be prepared.
2. Loan Interest:
Buying a car on credit automatically means you’ll be paying interest on a loan. Not only should you do your best to negotiate low monthly payments, but pay ahead of schedule as soon as you start servicing the loan. A good way to avoid heavy interest is to make a big down payment.
3. Statutory Fees:
All vehicles need to be registered with the state, and issued with license plates. This isn’t a service that’s free of charge. As long as you own a vehicle, you will have to pay and renew registration fees. Budget accordingly.
Insurance costs are part and parcel of keeping your car road worthy. If you want to minimize the financial impact of car-ownership, pick an affordable insurer. And remember, it is both irresponsible, and impossible, to own a vehicle without insuring it.
Gas prices should always be at the forefront of your mind when shopping for vehicles. This is because fuel is the single biggest expense that car owners pay for. The more frequently you drive, the more you can expect to visit the pump.
When budgeting for a car, it’s wise to think about owning it in the long term. Don’t just look at the price-tag on display, but factor in how much it costs to use and maintain the vehicle. At the very least, try to be as economical as possible with gas mileage. The longer you own your car, the more such routine expenses will add up. For more information, visit our website or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you stay safe. We got you covered!