4 Costs To Consider When Purchasing a Car

Buying vs. Leasing a Car: Pros and Cons of Each

Purchasing a new vehicle is a serious commitment, especially since many car owners spend about five years repaying the loan they took out to purchase it. Before making this commitment, factor in all of the costs associated with vehicle ownership. See the expenses below that car owners sometimes ignore when deciding whether or not they can afford a car.

1. Insurance

Car Insurance Newark DE is required in many states in order to operate a motor vehicle. Sometimes proof of insurance is expected before a dealership will allow you to make a purchase. Even if holding a policy is not mandatory in your state of residence, it may be wise to invest in one anyway. If you are deemed at fault in an accident and lack insurance, assets such as your home could be sold to pay for the damages you caused.

2. Maintenance

Every car on the road needs to be maintained. The cost of maintenance for your vehicle will largely depend on how many miles you put on it and how it has been cared for to date. Regular repairs include oil changes, tire rotations, alignments and new tires. Additionally, brakes and brake pads along with batteries must be replaced after a certain number of miles have been driven on them. These repairs are essential to keeping a car running smoothly and should be included in your list of expenses in determining whether or not you can afford one.

3. Fuel

Unless you’re purchasing an electric vehicle, you need gasoline to make your car run. Since the cost of fuel fluctuates, it is better to overestimate rather than underestimate this cost. Check how many miles per gallon the car you are thinking of purchasing gets. Perhaps you cannot afford to fill the gas tank of a large truck, but instead, you can consider a smaller truck or sedan.

4. Parking

City drivers often pay to house their cars in nearby garages. If this is the case for you, check into the price several garages in your area charge monthly before buying a car. Some long-term parking garages charge hundreds of dollars per month, so ensure you can afford this before acquiring a vehicle.

Keeping a car safe for the road and properly insured can be costly. Don’t forget to factor in all potential costs before taking the plunge and purchasing a new vehicle. Be sure you can afford the gas and parking fees as well.