Buying a new car is something most people dream about. It’s important that you carefully consider your decision before signing the papers. Specifically, you’ll want to make sure that you can afford whatever vehicle you’re looking into buying. This involves more than just looking at the sticker price. In addition to the actual price of the vehicle, you’ll also need to consider any additional costs you’ll incur.
5 Things To Budget for When Considering Buying a New Car
With this in mind, here are some other important factors when you’re considering buying a new car.
Buying a new vehicle could lead to either an increase or a decrease in how much you spend on fuel. It’s true that newer vehicles tend to be more fuel-efficient than older models. However, the only way to really know how much more or less you can expect to pay for fuel every month: directly comparing the fuel efficiency of your old vehicle to that of the new model you’re thinking about buying.
Insuring Your Vehicle
The cost of getting your new vehicle insured is another thing you’ll definitely want to take into account. Newer vehicles are typically more expensive to insure than older vehicles. This means even if you can find a cheap auto insurance provider, your monthly premiums are almost guaranteed to increase. However, it’s important to note: insurance rates aren’t solely based on the total value and condition of the vehicle. Rates are also based on the type of vehicle. Sports cars, pickups, and other more powerful vehicles are usually much more expensive to insure than a sedan.
Repairs and Maintenance
Another factor to consider: how much it’ll cost to repair and maintain your vehicle. For this reason, it’s always a good idea to compare manufacturer warranties to see what repairs are covered and for how long. Another good idea? See how easy it is to find both parts and mechanics to work on your vehicle. This usually won’t be an issue with any domestic brand, but definitely something you’ll need to think about when purchasing certain foreign-made vehicles.
Unless you plan on paying for your new vehicle in cash, financing is something to consider. Specifically, you’ll want to pay attention to the interest rate and how much your monthly payments on the new car will be. The interest rate is especially important since this will directly impact how long it will take you to pay off your new vehicle in full.
Finally, you’ll also want to see how much you should expect to pay to get your new vehicle registered. This cost is tied directly to the vehicle’s value. As a result, the more expensive your new vehicle is, the more you should expect to pay each year to have it registered.
The very last thing you’ll want to have happen is for your new vehicle to be repossessed because you’re unable to make the payments. Still, deciding whether or not you can actually afford a new vehicle requires more than just figuring out how much your monthly payments will be. Therefore, it’s always a good idea to take all of the above factors into account when budgeting for a new car.
About the Writer: Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. You can connect with Anica on Twitter @AnicaOaks.