An overwhelming 91% of households have access to a vehicle. That’s good news because having a car is more important than ever in 2021. Due to the pandemic, access to private transportation has helped keep Americans safe.
While many households have access to a car, private ownership is a different story.
Cars are often one of the most expensive things a person will buy over their lifetime. Do you know how much it will cost to buy a car? Have you considered the future costs associated with owning and using one?
If you’re not sure, then we can help. Read on to discover some of the hidden costs of buying a vehicle.
The Initial Investment
The initial investment you make into your car is usually the most expensive one. Regardless if you buy used or new, you’ll need to invest several hundred (or thousand) dollars.
This initial investment is what most people think of when they consider the ‘costs’ of a car. By far, this isn’t the last time you’ll put money into the vehicle, though.
Regular Maintenance and Use Costs
Once that first tank of gas runs out, you’ll need to start putting even more money into your car if you want to keep using it. How much you’ll spend on fuel varies based on the way you drive and the car you get. Gas prices only seem to be getting higher, too.
Gas isn’t the only thing you’ll have to spend money on to use your car, either.
You’ll also need to have regular maintenance and checkups. Expect to need an oil change every few months, and you may need other small fixes here and there, too.
In general, you’ll likely end up paying more in maintenance fees for older vehicles.
You’ll also want to invest in protecting your car, too. If you invest in things like solar tints, then you can extend the life of your car. Consider these expenses investments in your car’s future.
Compliance Costs (Insurance, Taxes, Tags)
A car won’t do you much good if it’s not legal to drive on the road. Expect to pay renewal and registration costs for your tags and taxes on your vehicle. Depending on where you live, you’ll also need to pay for your car insurance, too.
Nothing lasts forever no matter how much your initial investment is. That’s why you also need to consider the costs of future repairs on your vehicle. Some car parts are more expensive than others, and the brand you choose matters.
What Does it Really Cost to Buy a Car?
So, how much will it cost to buy a car? If you’re only thinking about the price tag, then you’re making a huge mistake. You should always consider costs associated with regular maintenance, use, compliance, and repair.
Otherwise, you could end up making an investment that doesn’t pay off.
Are you looking for more financial tips and tidbits to help you thrive through 2021? If so, then you already know you’re in the right place. Keep browsing through our blog section now to see more of our favorite articles.