Shopping for a new car can be exciting and a little overwhelming all at once. Being such a big decision, you know that it’s not something to rush into and that planning your budget carefully is of the utmost importance.
But what do all the costs of owning a car entail? When budgeting for a vehicle, many people make the mistake of accounting for nothing but the car itself, neglecting to think about all the other expenses that come along with it.
If you’re in this position, here are six costs you’ll need to squeeze into your budget.
Unless you’re buying your car in cash, you’ll be paying back a monthly loan amount for the next few years of your life. You need to ensure that this monthly expense will be manageable for you even in the case of a change in your work situation.
Keep in mind too, that a loan will involve interest, which means you’ll end up paying more for the vehicle overall.
You also need to make sure that you’re financially prepared to repair any damage to your car – which is why an emergency savings account is important.
If you purchase a luxury vehicle, parts and services can be expensive. This is why you might consider investing in a Mercedes extended warranty – it could be financially worthwhile.
You can’t just wait for your car to get wrecked before you decide to do any work on it either. Annual services are essential! Paying for routine maintenance costs can be a drag, but most of these expenses are worth it.
Getting your car checked out and spruced up once a year can save you from major damage a few years down the line.
Your car needs to be insured – this is not negotiable. Car insurance will cover you in the case of damage from any accidents or incidents, as well as if your car is stolen.
Look out for ways to save on car insurance, while still making sure you have comprehensive cover with an insurance company you trust. You might not enjoy the payment, but you’ll thank yourself for it in the event of an unexpected disaster.
Yeah, you need to put gas in your car to keep it running, yet another monthly expense that you need to keep in mind. Remember while you’re shopping that some cars are heavier on fuel than others.
You can keep your fuel costs down by walking more often and being mindful of your fuel efficiency – there are many ways to significantly reduce fuel consumption.
Keeping it Clean
Washing your car regularly is more important than you might think, which is why it made this list.
Not only will it keep your vehicle looking sharp, but it can protect the paint and interior from damage and wear on the paint or other materials. You can have your car washed professionally once or twice a month, or buy the equipment and do it yourself in the driveway.