What Is The True Cost Of A Car?

Too often, buyers fixate on the sticker price of a vehicle. While it’s important to get a low price, you also need to consider the costs after you drive the vehicle off the lot. According to AAA, ownership of a car could cost up to $9,000 a year and will likely go up.

That’s because you’ll have to pay for gas, maintenance, insurance, and other costs over the course of a year. So what determines the true cost of a car? Find out below.

  • Insurance – Car insurance is a big chunk of the true cost of a vehicle. Check with your insurance company to compare rates between new vehicles. Your driving record will also affect your insurance rate.
  • Gas – With the way gas prices go up and down, you’ll want to pay close attention to the gas mileage of the vehicle that you are considering. Think about how much you want to spend on gas a month.
  • Maintenance – The vehicle is going to need oil changes as well as part replacements over the course of its life. It’s better to go with genuine parts. For example, genuine Camry parts tend to last longer than generic parts.
  • License and Taxes – Taxes and license fees may vary based on the age and model of your vehicle. If you have a tight budget, explore the different license fee costs and taxes for various vehicles.
  • Interest Rates – If you are planning on financing the vehicle, examine the interest rate. You want to make sure that you get a reasonable interest rate to save money.

These are just a few things you should research when looking to buy a new car. It will help you to determine the true cost of the vehicle.