Whether you are doing research for your first car, or your second, or what you hope to be your last, many of us fall prey to hidden costs. Want to know what hidden costs you should know about before your next car purchase? Here are 3 car costs that many of us fail to consider when thinking of our next car..
Thinking of buying a luxury vehicle, or perhaps something a bit vintage? Did you know that the type of car you buy will affect your insurance premiums? And it is not just high-end cars that could drive up your insurance. For example, other cars that could cause higher premiums are vehicles with a history of breakdowns or of drivers injured in an accident. Tucson personal injury lawyers, Russo, Russo & Slania P.C. remind us why insurance is necessary. “Injury victims are rarely in a position to be able to comfortably afford the costs of medical treatment and lost income that may result from the harm they have suffered.” While insurance is mandatory, the amount you pay can be adjusted depending on the type of car you buy. So do your homework and call up insurance companies. Ask around. Make sure the car you have your eye on is not attached to hefty insurance premiums.
If you are using your vehicle to commute to work, do you really need for it to be an SUV that seats 6? Or a pickup truck that can pull a camper? Say no to vehicles that do not match what you need out of it. Getting a vehicle that has more horsepower than you need will cost you dearly in gas guzzled. On average, a car will accumulate between 10,000 to 15,000 miles every year. Taking into consideration today’s gas prices, this averages to 30 miles to 1 gallon of gas. Which means you may be spending between $1,000 and $1,500 a year on gas. But if your car vehicle is a gas guzzler, and you only get 15 miles out of 1 gallon, then your total yearly costs for gas will go up to $2,000 to $3,000 a year. Ouch!
Of course, if your car is mainly to ferry kids around then you do need that extra seating space, plus something kid safe. And getting something smaller would not serve you well. If your work involves bringing your tools and equipment from place to place, then you want a vehicle that will last long on the road. Carefully think about the primary purpose of your vehicle and then do research for vehicles that are popular for meeting those needs.
Car maintenance payments.
Surprise maintenance costs are often what trip up new car owners. Just starting off after college and are in your first year of a new job? Getting hit with car maintenance costs can put a hole in your monthly budget that you are unprepared for. This is particularly true if you have bought a used car that has a limited warranty. Car related payments that are in addition to car payments to the bank, which you should know about, include…
- insurance premiums
- car tax – state and local
- vehicle registration fee
- title, license, documentation, compliance, emissions, and other related fees
- oil changes
- tire changes
Some fees are unavoidable, such as car tax and insurance premiums. But with maintenance fees, a little DIY study can help you cut costs in that area. For example, YouTube tutorials can walk you through how to do an oil change on your own, as well as how to rotate your tires, and more. Of course, you might want to leave more complex machine work for a car repair shop. But for minor maintenance, you could be saving yourself thousands of dollars by learning how to do it yourself.
Taking an hour or two to do some research on these three elements before walking into a dealership. Doing so might just help you keep more cash in your pocket.