Buying your first car can be very exciting. There are many people who make the mistake of rushing into a purchase rather than taking the time to consider the true cost of the car. There are many different factors that can affect how much you are truly going to be paying for the car each month. The following guide walks you through a few factors that will affect the overall amount you will have to pay for the car when everything is said and done.
Consider the Initial Cost of the Car
The amount you see listed on the window of the car at the dealership is not the amount that you will actually pay for the car if you are financing it. When you finance a vehicle, there are interest rates tacked onto the amount that is listed onto the price listed.
The interest rate can vary from person to person based on your credit rating. Credit history, and financial situation. It is important to find out how much your monthly payments will be for the car before agreeing to purchase it to ensure that you can afford the payment each month.
Consider the Cost to Insure the Car
Before you purchase a car, it is important to contact a car insurance company and find out what your payments will be for insurance coverage on the car. Obviously, different cars are insured at different rates, so you if you’re on a budget you can also check out the cheapest cars that can help you save money on car insurance.
If you are required to have specific insurance, such as SR22 insurance coverage, it is important to let the agent know so that they can give you an accurate quote for the coverage that you need.
Consider the Fuel Costs for the Vehicle
If you are someone who has to commute to work on a daily basis, it is important to take the time to consider how much you will have to spend on fuel costs each month. It is best to choose a car that is as fuel efficient as possible so that you can pay as little for fuel each month as you can.
Determine how many miles you travel to and from work each day and multiply it by the number of days you work each month. Add a hundred miles or so to that number to account for the times when you need to run around for groceries or to run errands. Multiple this number by the cost of gas and this allows you to know roughly how much money you can plan to spend on gas each month.
Consider Maintenance Costs for the Vehicle
It is important to contact a mechanic you trust and ask him or her about the maintenance costs associated with the vehicle that you plan to buy. There are some cars that are more expensive to maintain than others because the parts are harder to get. You want to be sure that you purchase a car that has parts readily available and that is easy to work on. This will ensure that you will pay as little as you possibly can in maintenance costs of the vehicle.
It is also important to take the time to consider small costs that are associated with car ownership because they can add up very quickly. For example, you need to consider if you will have to pay to park the vehicle or if you have parking readily available to you. The cost to park a vehicle in a city can add up over time and cause you to spend more than you plan to spend on the car each month.