When it comes to buying a car, the sticker price and payment shouldn’t be the only things you consider. As you begin your car-buying journey, it is important to also be aware of these six often overlooked costs:

Insurance
Having auto insurance is one of the most expensive elements of owning a vehicle, and it’s a legal requirement in the majority of all states. 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. If you are trying to find the best rate for your insurance, consider acquiring quotes from multiple agencies and choose a policy based on the price and what is covered. Many insurance companies even have policies that offer perks for good driving, good grades if you’re a student, or even for purchasing an electric vehicle.

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 depend on the make and model of the vehicle. Dealerships will often cover this cost for you for a fee, but it’s important to bear in mind the cost of tax, title, and tags should you purchase from a private dealer or individual.

Add-Ons
Verify the cost of specific add-ons if they are not clearly stated. Examples include wheel protection, Guaranteed Asset Protection (GAP), fabric protection, and extended warranties. Knowing up front the cost of these items will help deter any surprises further along in the buying process.

Maintenance
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.

Depreciation
Research the vehicle’s 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. You may want to look up the depreciation value of the vehicle you are eyeing prior to your trip to the dealership.

Fluctuating Fuel Costs
When purchasing a vehicle, it’s important to consider things like the cost of fuel. A new truck might be tempting, but a more fuel-efficient vehicle may put less burden on your wallet. Another thing to think about is the fluctuating cost of fuel, and whether the vehicle you want is in line with what your budget will allow. Thinking about these costs now will help you stay on top of the long-term costs associated with owning a vehicle.

Being aware of additional factors that can increase the overall costs of a vehicle can help make sure you get the vehicle you want while staying within your budget. If you are ready to get in the driver's seat of a vehicle, consider an auto loan with DCCU. Find out more here.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.