So you’re shopping for a new car, and you know how much you can afford. Great! Just don’t forget, your monthly payment isn’t the only thing to consider. When budgeting, don’t forget to factor in these costs:
Insurance
Your insurance premium will depend on not only the type of policy and amount of coverage, but also the type of car. The age, safety rating, size and likelihood of theft also help determine your rate. You might be able to save money with an older car, or one with a good safety record and low theft rate. The good news is that once you have narrowed down your choices to just a few, you can get a quick rate quote from your agent to compare options.
Gas
Fuel is one of the many expenses of owning a car, and fluctuating prices can impact a budget, especially when it’s a little tight. Factor in how much you will be driving and the fuel efficiency of the vehicle you are considering. If you commute many miles, it might make sense to look at fuel-efficient options. The Department of Energy has a Fuel Cost calculator that lets you create side-by-side gas cost comparisons between vehicles.
Maintenance and Repairs
The routine maintenance and repair cost will vary by vehicle, so you may want to read up on the average costs of maintenance or replacement parts for the car you want. Regardless of what kind of car you get, you can count on routine services such as oil changes, tire rotations, and replacing worn out parts like filters, wiper blade, tires and brake pads.