Car shopping could be one of the most stressful tasks one can face. If you’re in search of a newer car, the cost of the car itself can be stressful. If you’re buying a used car you may save quite a bit, however there’s always that thought that goes through your head; is there anything wrong with this car?
Sometimes there will be the option of purchasing a warranty even if the car is used. It all depends on the company selling the warranties. A few years ago I purchased a 95 Nissan Maxima with about 80,000 miles. There was a warranty company that did help cover the cost of any major car repairs within 12 months of purchase. I believe this cost about $600. I could now rest assured knowing that if the transmission were to go out; my warrantee would cover the cost for repair. The car turned out to be a great vehicle with very few minor problems. So I guess the $600 was paid for my own reassurance.
These are a few things to take into consideration when in the market to buy a new or used car. Some these things include gas expenses, oil changes, repair and maintenance and insurance expenses.
Gas expenses, you never know what again in the cost month from now or even a year from now. Over time as will always be an expense that continues increasing.
Oil changes, the cost of this is continually rising as well. I remember when I use to be able to get an oil change for about 10 bucks. This wasn’t even that long ago. Now the prices are around 20-25 bucks per visit. Most drivers will need one every three months.
Sooner or later most car owners come face to face with either a minor or major repair of some kind. If your transmission goes out on you, the cost to repair can run anywhere from $1000 and $4000 mainly depending on the car and your mechanic. Minor repairs and maintenance that most drivers will face will include changing the brakes and/or the tires.
Warranties are usually set up on an annual basis. To maintain a warranty on a vehicle you must pay once a year to keep a warranty active. This is another thing to consider when deciding how much you want to spend on the car payment alone.
The Insurance Expense
Insurance can be costly as well, especially if you have a few marks on your driving record. One of the best ways to save on insurance is simply by comparing quotes online. Before doing so you’ll need to determine exactly how much coverage you need as well as a reasonable deductible amount. The deductible is the amount you’ll need to pay before the insurance company pays you for any claims that you make. Usually you want to make your deductible and amount you can afford to pay out of pocket if you need to file a claim. Keep in mind, the higher deductible you choose the more affordable your premium.
If you’re young driver looking to buy your first car you may want to sit down with someone who has owned a vehicle for at the least three years. Between the two of you, you can get a good idea on how much owning a vehicle can really cost. Every year I personally spend about $120 on oil changes and an average of about $500-$1000 on other general maintenance and car repairs. A full tank of gas usually gets me through the week. Early this year that cost for a full tank was about $50 and today it’s about $27; hopefully gas will stay cheap for a while but I wouldn’t plan on it. Besides car payments and insurance, I know I personally need to plan on spending, or rolling over, an extra $200 a month. As long as you evaluate your options and study the expenses involved, you should make out alright.
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If you know of any other common expenses, feel free to comment.