Much like home-owning, owning a car comes with its own planning, organising and considerations. It’s not a simple equation of signing the papers and driving off in your new ride. Buying a new car entails quite a few quite a few expenses that you’ll need to budget for like a personalised car plate. Here are the most important things to think about.
Repayments
Unless you’ve paid for your car cash, you most likely took out a car loan to buy it which you’ll need to pay off monthly. It’s crucial that when you’re shopping, you have a clear idea of what you can afford on a monthly basis, and that you’ll be able to continue making those payments for years to come.
Shopping for the best deal you can find will help you to keep your car repayments as low as possible, so take this decision seriously.
Insurance
Your new car is your baby, and you’re going to want to take good care of it! Aside from driving carefully, you need to make sure that you are covered in case of any emergencies. Whether you’re in an accident, your car is stolen or you end up with damage from any other cause, your insurance will help you to cover the costs.
However, you don’t need to be spending an arm and a leg. You can get discount car insurance and still rest at ease, knowing that you and your car are covered.
Maintenance
Unfortunately, car insurance doesn’t typically cover routine maintenance or even all kinds of repairs and issues that involve wear and tear on your car. Getting your car professionally serviced around once a year is an important step to making sure that it’s well taken care of and minimising the potential for serious issues down the line.
A good way to budget for routine maintenance on your car is to save a little each month, so that when your annual service rolls around you know you’re set and that you can afford it.
Fuel
We all know we have to pay for fuel, but don’t forget that the car you buy can have a major impact on just how much you’re spending on gas each month. Not all cars are made equal, and certain makes and models can be far more fuel-efficient than others. If you’re on a tight budget, you’ll want to do your research on this before you sign on the dotted line.
Another option is to completely wipe out your fuel expenses by opting for an electric vehicle. While these cars are most expensive upfront, you’ll be saving on gas for years to come, so it might be a worthwhile consideration.
The Bottom Line
Owning a car can be expensive, but knowing what you’ll need to be paying upfront will help you to make an informed and responsible decision when making your purchase. Do your research and plan meticulously and you’ll be able to avoid running into any financial trouble on account of your vehicle.