Buying a car is an exciting experience, but the fun soon fades when you realize all of the hidden costs involved. When shopping for a new or pre-owned vehicle, realize that the price you pay the dealership is just the beginning. Use the following information to fully prepare yourself for entering the world of car ownership.
Interest
The first big expense you need to factor into your budget is the interest on your loan. The best thing to do is wait until you have saved up enough money for the full price of the vehicle, but this is seldom a realistic solution. If you do need to take out a loan, do some research before talking to the finance center at the dealership. You may find a better interest rate elsewhere.
Insurance
Insurance is a must. It might be a good idea to shop around for the best rates as well as discuss with an agent how the cost of insurance is determined. For example, of you are a young, unmarried male, your insurance will be somewhat high. You will want to consider an older car, or a more traditional model, rather than a sports car to keep the insurance at a reasonable price.
Additional Costs
In addition to insurance and loan rates, you need to think about everything else your car needs. Along with gas, you will be paying for routine maintenance. You might even want to purchase accessories. If you live in a snowy region, you might want a snow plow to attach to the vehicle. Another common accessory would be a trailer hitch for hauling trailers.
Buying a new or pre-owned vehicle is truly an exciting experience. Nothing beats that feeling of driving your own car, but don’t let all of the unexpected costs ruin your mood. Do your homework before you begin shopping to ensure that not only the price of the vehicle but things like insurance, interest, accessories, and upkeep don’t exceed your budget.