The Cost of Vehicle Ownership

You see the price tag clearly from the windshield of a vehicle, but this amount isn’t a true depiction of the amount you’ll pay each month to own that vehicle. According to Experian, the average monthly payment for a new vehicle loan is $506 per month, while the average payment for a used vehicle is $364 monthly. These amounts include miscellaneous fees that the dealership oftentimes forgets to tell you. It does not include the costs of insurance, however, so do attach this amount onto the deal.

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Remember that there is also depreciation when a new vehicle is purchased. Sure, that new car smell is lovely and so are the bragging rights that you enjoy, but is it really worth losing thousands of dollars the moment the vehicle is driven off the lot? This isn’t money that you will ever see again. That is quite a large sum of money to simply toss out the door but essential, this is what you are doing.

When you apply for loans for your car, check out the rates, interest fees, etc. as well before you apply. You can find many affordable auto loans to suffice your needs, though rates vary from one provider to the next. When you compare and research before signing on the dotted line, it is easy to keep expenses down and ensure that you never spend more money than intended.

Finally, ensure that you consider the costs of maintaining the vehicle. On average, car owners spend $1,300 annually to maintain their car. While it might seem like a significant amount of money, it is very little considering there’s 12 months in the year. But, do keep in mind this is only an average number and you might spend considerably more if the vehicle is in poor condition.