The Other Ways Your Car Will Cost You

Money

So, you’re thinking about buying a new car. Maybe you’ve saved up for a long time and waited with great anticipation for this day to come. Hopefully you’ve done all of your homework like checking your credit report for any surprises, thoroughly researching cars you might be interested in buying on a site like Cars.com, securing a lender or lenders who will give you a fair deal on financing based on your creditworthiness and estimated the value of your trade in if you have one giving you more leverage during price negotiations. Something people don’t always consider when buying a new car is all the other ways your car will cost you over its lifetime.

Tax, title and license is typically something that is rolled into the purchase price of your vehicle. You can also elect to pay this portion of the transaction up front. This covers the sales tax on your vehicle based upon the state in which you live. It also covers the title on your vehicle which is proof of ownership that your lender will hang on to until you’ve paid out your loan. This charge also includes the cost of getting a license plate for your new car which is recurring cost either annually or biannually depending upon where you live. Depending on where you live and the purchase price of the vehicle you intend to buy, the tax, title and license charges incurred in the transaction could add thousands of dollars to the total amount financed on the vehicle. You can find calculators online to estimate what these charges will be based on your location.

Insurance is another cost associated with car ownership. If you’ve been driving a used car and anticipate getting into a brand new car you can expect for your insurance costs to increase. If you find a car that you like and want to buy, you can call your current insurance company with the vehicle identification number, make, model and year of the car, and they can estimate how much your insurance premiums will be affected by the specific purchase.

Fuel economy is another factor that will impact your budget for the long haul. Car manufacturers are doing amazing things to maximize fuel economy in their car designs and it only helps you in the long run to choose a vehicle that won’t cost a fortune in fuel. And, if you’re buying new, you might enjoy a maintenance contract that covers simple chores like oil changes for a period of time. If you’re buying a used vehicle, maintenance is another cost you’ll need to consider and researching the dependability and vehicle ratings of cars you’re interested in could be a smart move.