Want To Buy A Car? Add $3,201 To The Price
According to Bankrate.com, the cost of owning a car in the United States (gas, repairs, insurance, taxes & fees) averages $3,201 every year. That doesn’t take the original cost of the car into account, so it’s a good idea to do some research before you buy a vehicle.
Fuel costs vary constantly. The U.S. Department of Energy has a tool to compare the fuel usage for vehicles as far back as 1984, and you can get the mobile version on your phone to help you shop. This equips you to walk past the gas guzzler that looks like a bargain and invest more up front to save later.
Repairs can turn your prized possession into a pain of phenomenal proportions. Car Talk has become one of NPR’s most popular call in radio shows because automotive repair is one thing every car owner deals with. One question came up so frequently they did a survey on whether dealerships charge more than independent shops. The answer: repair costs are strongly tied to where you live (what cost $1,500 in Montana cost $3,000 in Maryland in their study) and most dealers will charge 15% more than the average independent garage. Doing your own repairs and maintenance where possible can mean great savings if you pick a car you know how to fix.
Insurance costs vary with the type of car and coverage you are interested in. It’s a good idea to get several quotes from different companies and to know your state’s requirements for coverage. Ask about changing your deductible, discounts for good driving, and anything else the company offers that can help your budget. Be careful to only deal with reputable insurance providers when choosing this essential item.
Taxes & fees also vary by state. Some transportation costs can be a tax deduction; make very sure your item falls within the IRS guidelines if you choose this option. For many taxpayers, the cost of maintaining a vehicle or depreciation of its value are welcome deductions every year.
Most drivers consider these costs an investment that pays off in improved income and lifestyle, even if they must add parking charges to their list. Car ownership is therefore a goal for most of us. Buyers can find excellent resources for their vehicle search at USA.gov and the Federal Trade Commission. For instance, there are possible risks when buying from an unknown seller instead of a dealer like the buy here pay here financing used car lot. Any dealer is under strict government regulations and can possibly offer a warranty or financing for someone who has poor credit.
Read the fine print and pay attention when car shopping. There are many details to keep track of and it’s better to have your options on paper or a spreadsheet than in your head when you try to compare cars, warranties, and financing data. Look at what happens if you miss a payment; what kind of grace period do they offer? Is there any benefit to doubling payments? Will insurance costs affect your choice? These factors vary with car and dealer, so it pays to be accurate when comparing possible purchases.
Creative Commons image at Hugo90
Share this:
Category: Car Purchase
