When it comes to buying a car, there is more to consider than just the sticker price and payment. As you begin your car-buying journey, it is important to be aware of these often overlooked costs:
Having auto insurance is one of the most expensive elements of owning a vehicle. Make sure you research the cost of insuring the make and model you have in mind before purchasing. Insurance rates can vary based on make, model, body style, and even trim level.
Tax, Title & Tags
Most states and local governments have laws in place that require buyers to pay sales tax. Keep in mind, taxes are based on the selling price, so a more expensive car equates to a higher amount paid in tax. Each state also sets its own regulations for title and tag fees, which usually depends on the make and model of the vehicle.
Verify the cost of specific add-ons if they are not clearly stated. Examples include wheel protection, Guaranteed Auto Protection (GAP), fabric protection, and extended warranties.
When contemplating which vehicle to purchase, it is important to consider routine maintenance items such as oil changes, new tires, and brakes so you’ll have a good idea how maintenance will impact your household budget. In addition, it may be beneficial to do research on long-term maintenance needs if you plan to keep the vehicle for an extended period.
Research the vehicle's expected depreciation rate to help put money in your pocket at the end of the ownership cycle. A model that retains its original value longer will collect a higher resale value for the owner.
Being aware of additional factors that can increase the overall cost of a vehicle can help make sure get the vehicle you want while staying within your budget.
This article is for general information only and not intended to provide specific advice or recommendations for any individual.