The Cost of Owning a Car

If you have a car, you probably already know that the cost of owning a vehicle is much more money that the price you paid for it at the dealer or used car lot.  There are many different components that go into calculating the cost of owning a car and for those looking to buy either a used or new car, it is important to know so that you budget your finances correctly.  Here are some tips.

The Cost of the Vehicle
Obviously the cost of the vehicle is perhaps the biggest chunk of money when it comes to figuring out how much it costs to own a vehicle.  However, if you haven’t yet bought the car yet, make sure you figure in the interest the bank will charge you for the loan’s term.

Insurance is another big charge for owning a vehicle.  Obviously every driver will be charged differently.  These charges can change depending on location, age of driver, driving record, type of car, distances you travel, policy features, etc.  One area that you can definitely save on car ownership is insurance costs.  Shop wisely and weigh all your alternatives.  By saving a $20 or $30 bucks per month, you can save big each year.

Fuel Costs
Besides paying for your car and having it legal for you to drive it, the cost of driving your vehicle depends on the cost of fuel.  Again, you will have to determine the cost of fuel based on your driving style and fuel costs, however it is very easy to spend $1,000 or more each year on fuel costs.

Don’t forget to factor in maintenance costs.  While a new car may be under warranty the first few years, you will still need to purchase oil changes, new wiper blades and other small maintenance items.  Later on during the life of your vehicle, you may be throwing hundreds or thousands of dollars into the vehicle each year- ultimately driving up the cost of ownership.

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