Key Takeaways
- There are more factors for the cost of your vehicle other than just the monthly payment, these include insurance, maintenance, and fuel costs.
- Online you can find a variety of ways to estimate how much specific vehicles might cost and if it is the right vehicle for you.
- Finding ways to lower car ownership costs is paramount and can help you save money in the long run.
- Make sure to take into account the depreciation of your vehicle as you look at ownership costs.
On Top of the Loan for a New Car
Owning a vehicle involves much more than just the monthly amount you pay for the right to own your vehicle. Beyond your loan payments, there are insurance payments, fuel, maintenance, and unfortunately sometimes repairs.
The most regular payment besides your monthly payment is your insurance payment. Insurance can be paid in a variety of ways, the most common of which is monthly. You can also pay up front for six months to a whole year of coverage. This will probably be your largest payment outside of your standard monthly payment. There are plenty of online tools that can estimate how much your monthly insurance payment will be.
The other most consistent and significant payment besides your insurance payment will simply be fueling your vehicle. Fortunately the EPA website has fuel economy ratings and what you can expect to pay every year for gasoline based on your specific vehicle and possibly even the specific trim.
Car Ownership Calculator
Sometimes finding and doing the math can be difficult, and we all know spreadsheets and lists can be annoying. The best part is that the internet has prepared a way so that you do not have to do the math by yourself. Nerdwallet, Edmunds and other sites offer you what you can expect to pay for the entirety of your vehicle. If you are looking for specific calculations like insurance Jerry AI, Progressive and other insurance companies will calculate how much you can expect to pay for your coverage at their own company or others. The EPA will help you to calculate fuel costs as well, this will help you to understand exactly how you can pay for your vehicle and just how much that might cost.
Lowering Car Ownership Costs
While this might all sound like it is very expensive, you can find ways to lower your costs across the board. One way that might sound counterintuitive at first is making sure to pay for regular maintenance. In the long run this will ensure your repair costs and other costs stay lower. There are a variety of AI websites that also will shop around for you to find the right amount of coverage you need for your insurance but will also show you a variety of prices and options. You can also find a variety of ways to finance your loan, be it your bank, financing through us, or other financiers that can provide better interest rates for your vehicle.
Depreciation
One big factor that often does not get considered very often is depreciation. While this mostly depends on whether or not you intend to resale the car, it is still something to consider. The good news is that there are calculators online for that as well, they will show you the prices year after year and how much your car might depreciate after standard amounts of driving, wear, and tear.