4 Vehicle Expenses Every Car Owner Has to Take Care of Monthly
Buying a car is a thrilling experience, but it is important to consider the costs associated with transportation freedom.
Quite often, new car owners focus on the cost of purchasing a new model with exciting displays and interactive experience, overlooking the additional costs ranging from preventive maintenance to insurance.
Budgeting for routine preventative maintenance helps reduce the cost of owning a car by catching issues early enough.
Understanding these important monthly costs will help you make a more informed decision when purchasing a car.
Car Insurance
In many states, a third-party insurance policy is a must-have for every car owner to protect against financial losses resulting from an accident.
Nonetheless, car owners opt for comprehensive coverage, which is more expensive, to pay for car damages in non-collision accidents, such as theft, natural disasters, and vandalism.
Car insurance providers usually give multiple payment options, including monthly. For complete financial protection against damages arising from accidents, every car owner should budget for insurance.
A car’s insurance cost depends on the car’s make and model, ZIP code, coverage selections, driving record, and credit history.
Maintenance and Repairs
Regular car maintenance prevents malfunctioning, increases performance and fuel efficiency, lengthens the car’s life, and improves safety.
Car maintenance costs can run high or low depending on the brand, make, and model, forcing car owners to consider preventive maintenance.
Regardless of the model, make, or brand of car, every car owner must budget for periodic maintenance and repairs to optimize the functionality of their vehicle.
According to American Automobile Association (AAA), the average car maintenance and repairs cost is $1,186 per year, translating to around $100 monthly.
Gas
Every diesel or gasoline engine car owner must budget for gas. Gasoline and diesel are derivatives of petroleum used to power engines.
The cost of gas depends on the type of fuel used, the engine, and the efficiency with which the engine’s output is transmitted to the vehicle wheels.
Every car owner needs to budget for gas monthly unless it is an electric car.
Nonetheless, the gas expense is likely to be replaced with the cost of charging electric vehicles because phasing out gas-powered vehicles has become a mainstream policy proposal.
Engine Fluid Costs
A car is an assembly of mechanical systems and complex machinery that rely on different types of engine fluids to operate correctly.
The vehicle fluids lubricate the moving mechanical parts and provide fluid pressure for hydraulically operated systems.
Every car owner must budget for engine oil and transmission fluid to lubricate and cool the mechanical components, such as seals, pistons, gears, and pumps.
In addition, budgeting for engine coolant, which cools the engine by providing heating fluid to the climate control engine system.
Owning a car can be financially frustrating, especially if you are unaware of the additional costs.
Most car owners budget for the initial purchase cost, neglecting the monthly hidden fees, ranging from insurance to registration with the DMV.
Nonetheless, shopping for different insurance quotes and joining gas rewards programs can help reduce the monthly costs.
Share this:
Category: Car Purchase
