Make sure you know the true cost of car ownership
Part of buying a car is evaluating and understanding the true cost of ownership for that particular vehicle. The worst thing that can happen is for you to figure out that you can afford to buy the car but then, after you get it home, find out you can’t afford to own it. Just some of the things you should be evaluating to get your true cost of car ownership are:
- General Operating Expenses
What does it cost to change the oil or tune up the car? Does the car require expensive synthetic oils or less expensive standard oil? What about replacing the brakes? Are the pads inexpensive and readily available… or are they custom or high-end brake pads that cost a lot to replace? How about the oil filter? Will any standard filter do… or is there some special filter required. These are the kind of questions you need to ask about the vehicle you are considering before you take it home.
Is the new car you’re buying going to double your insurance rates? If you don’t get a quote before you buy it, you’re making a big mistake. Luxury vehicles and SUVs can be significantly more to insure than smaller cars with lower replacement costs. So do yourself a favor and get a car insurance quote first!
- Fuel Costs
Have you looked carefully at the mileage ratings for the car you are considering? Does it require a higher grade of fuel than your current car? You should seriously look at what your new car will cost on a monthly basis before you sign on the dotted line. An extra $50 or $75 a month in fuel costs could be a very bad surprise once you’ve bought your new car.
- Annual Taxes and Fees
Make sure you check with your local DMV and have a good handle on what your car will cost to register and license every year. Also, check on any other taxes and fees that may be applicable.
- Research common problems
As was noted earlier in this guide, researching common problems is a good way to save you money-headaches in the future. Once the warranty has expired, a good deal can quickly go bad if you’re spending hundreds of dollars every year fixing common problems.
- How much are tires?
If that new car specifies expensive tires that don’t wear well you may want to reconsider your purchase decision. Tires can be a big expense and they typically need to be replaced every two to three years depending on how much you drive.
Federal Auto Loan is all about helping you get the financing you need for the vehicle you want to buy. Apply now for a bad credit auto loan. It’s free and easy and only takes about two minutes.