A vehicle is perhaps your second largest investment that you are ever going to make in your life after your house. Since it is a huge decision, a lot many factors have to be considered and these elements mainly rotate around the expenditure that will be incurred upon you; and not just the preliminary cost of the car, but all the regular and expected costs that are going to come with it.
Of course if this is your first car then it is very likely that you think your expenditures end with that hefty lump sum payment. Sorry, to have to be the one to burst your bubble, but this is only the first of the car related expenses to expect; there is a long line of expenses that follow soon afterwards.
Registration, Tax and Insurance Costs
It is quite often that prospective buyers overlook the insurance costs even though purchasing an insurance is compulsory (at least third party insurance) in every single state. You cannot drive a car on the road and you cannot have it registered, even if you have a license, without having insurance. The registration, tax deduction and insurance will mostly depend upon the type of the car and your credit etc.
If you add extra coverage to the basic insurance policy to protect yourself and your car, then you can add those extra costs too. However, at an average you can expect it to be well above $1500 annually. But the insurance costs can vary depending upon a variety of things; for example a few of the important ones include the type of cover, the age of the driver, the age of the car, driving record, condition of the car, cost of the car and of course the safety features that have been added to it.
Costs of Fuel and Loan Repayments
You can’t run your car without fuel and with the fluctuating prices of fuel, you will have to budget your weekly or monthly fuel expenditure by keeping a little above the average expected.
What you should also include in your monthly budgeting are the loan repayments if you have purchased the car with 0% annual percentage rate (APR) which is sadly becoming the order of the day. So if the other additional costs weren’t enough for you, add loan repayments as well to add-on costs of your first car.
Maintenance and Repair
A car is a mechanical object, with top of the line technology infused into it to make your driving experience all the more enjoyable and convenient. Most of the cars that have been built in the last 5 years are loaded with safety features that literally tell you what you need to know about your car and when you need to know it and extras like auto window tinting can really assist in cooling. Tinting a car’s windows typically costs $100-$150, but you can find specific details and learn more about the process at Window Tinting Prices Data. But every installed item has its own lifetime and your car manual will tell you when to expect a replacement of some of these items.
It is estimated that an average American family with an average income spends around $800 to $1000 annually on car repairs and general maintenance if they keep two cars. This is an average that you can expect (or half of it, if you are the owner of a single car). Anything beyond that if you don’t face a terrible accident and if you regularly maintain the car as per manufacturer’s recommendations is over and above and can be avoided if you are smart enough to outsmart the mechanic before he does the same to you.
With regular maintenance check-ups of your car, you can avoid being buried into the large pits of expenditures that could have been avoided by small periodic expenses. For example, getting a transmission rebuild, repair or replacement when needed or going for a regular wheel alignment as well as a rotors, calipers and brake pads check-up will not cost you as much as what you will be required to pay if you damage the brakes or axles or if you have to get the transmission box repaired or replaced.
The windshield of the front and rear are large items and can get damaged or scratched by sand and other abrasive materials that are in the atmosphere or that come in contact due to strong winds and storms. The front windshield in fact is the third most important safety feature on a car. The repair and/or replacement of such an item can cost from $100-$350, therefore if you want to avoid these costs, it is wise to take preventive measures like buying a windshield or car cover or parking the car in the garage.
Change of car oil and coolants are something that are dependent upon mileage milestones and it is better to use oil change coupons.
Besides these monthly or annual extra expenditures related to your car, you still need to save some amount on the side for the unexpected emergencies. For example if your car meets an accident and it requires a paint job or a repair. CPJC is a helpful website if you’re looking to estimate the cost of a paint job for your vehicle or need advice on finding the best auto body shop in your area.