A whopping 95 percent of households in the U.S. have at least one car – and it’s easy to see why. Cars bring unapparelled convenience to our lives. We no longer need to plan our commutes around bus and train schedules.
However, owning a car comes at a cost. You certainly already know that buying a car today will cost you an arm and a leg, seeing that the average price of a new car is about $49,000.
The bad news is that’s not all there is to car ownership costs. As soon as you drive off the dealership or take delivery of the car, you’ll embark on a relentless spending spree.
Read on to understand what other costs you’ll incur.
All states except New Hampshire require car owners to purchase auto insurance. Even in NH, you must prove that you have adequate funds to meet any financial liabilities in the event of an accident.
As such, as soon as you’ve bought a car, insurance is the next bill that awaits you. Your car insurance cost will depend on several variables, including the make and model of your vehicle, your age, and your driving record.
Shopping around and getting multiple quotes is highly recommended if you’re looking for the best deal. See this auto insurance agency to get started.
Car Repairs and Routine Maintenance
Like any other machine, your car needs regular maintenance to perform optimally. Manufacturers have specific maintenance recommendations for their vehicles, so it’s prudent that you follow them.
On average, you’ll need to get an oil change every 5,000 miles. This may include doing tire rotations and changing air and engine filters.
Even with proper maintenance, your car can still break down. Something can go wrong with the engine or gearbox, for example. The good news is new vehicles are covered by warranty and used car owners can also purchase a warranty.
In general, how much you spend on routine car maintenance and repair warranty will largely depend on the make and model of the vehicle. High-performance sports cars cost much more to repair and maintain than regular convenience sedans or wagons.
Cost of Gas or Electricity
If your car has an internal combustion engine, it needs gas to run. If it’s an electric vehicle, it has a battery pack that needs to be charged often.
The jury is still out on which is a more cost-efficient purchase between ICE cars and EVs, but recent data shows EV owners spend about $3700 on electricity while gasoline car owners spend $4,300 on gas.
Whether buying an EV or a gasoline car, keep the cost of charging/fueling it in mind. A small/light car will cost less to run.
Car Ownership Costs Can Make or Break Your Driving Experience
You’ve made an inevitable decision to buy a car. However, don’t let the excitement lead you to a vehicle that will strain your finances. Besides the purchase price, factor in these car ownership costs. That’s how you’ll find the perfect car for you.
Keep an eye on the auto car section of our blog for more car tips and advice.