Your Payments Are Not Your Only Costs When Buying A New Car

by Hank

The cost of an automobile, whether it is new or used, can put a big dent in your monthly budget. Therefore, it is typically best to shop around for a car both online and in brick and mortar dealerships in order to get the best deal possible. Outside of your home, a car is most likely your biggest purchase. So, you should take your time and make the best decision possible for your family and your finances. After all, there is more than looks to consider in your new ride. In fact, there is a lot more than just your monthly loan payment that goes into the price of your car. You also have to consider things such as the fuel use, yearly maintenance costs, and insurance costs.

Consider Insurance Costs. It is best to initially start your search for a new vehicle online so you can take your time, see price ranges, and make a sound decision about how much your dream car will probably cost. You need to check with your insurance carrier about the insurance rates for a new vehicle or the types of vehicles you are interested in buying. You may be tempted to buy a red convertible, but you also have to factor in the amount of insurance you will pay for such a car. It will not do you much good to save money on your monthly car loan payments if you are just going to be taking to the cleaners in insurance costs. Also, your insurance company will factor the likelihood of theft into the cost of your future premium. Certain models are at greater risk than others.

Average Gas Mileage? Another factor that has been all the rage and garnered a lot of press over the past few years is gas mileage. While not a sexy cost to consider, it is one that should be taking into consideration with the entire cost of the car as well. While you may fall in love with the looks of a certain gas guzzler, you still have to think about the total futures costs for all of that fuel.

Maintenance Costs. Did you realize that the average American spends approximately $1,200 per year on maintenance costs per car? You might go months without paying for very many repairs or tune-ups, but eventually you will get caught up in a one time $500 car repair bill. That is always the way it seems in my family.

You need to look at all the costs associated with the make and model of the car you are planning to purchase. You can get a better idea of your total new car cost if you consider all of the associated expenses of new car ownership such as gas, insurance, and maintenance which are the hidden costs. There is no substitute for adequate research before you buy. Having a good understanding of all the costs of a new or used car before you decide on any vehicle will help arm you with all the details you need to make a sound financial decision on the car of your dreams.

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