The Hidden Costs of Vehicle Ownership

Owning a car offers freedom, convenience, and maybe even a bit of status. But it also comes with costs -- some of which are not always so obvious at first glance. So when deciding how much you can afford to spend on that new ride, be sure to take in the costs that go beyond the initial sticker price. Here are just a few common factors to consider.

 

• Interest. Keep in mind that, should you finance your vehicle purchase by taking on debt, you will be paying more than just the sticker price that you see advertised. The interest that you pay on such purchases can easily add up to an additional 25% of the cost of the car itself. (Which, of course, depreciates the moment that you drive away with it, which can make selling off a car later in order to get out of debt problematic.)
• Insurance. Driving without insurance is both illegal and financially reckless, so you should calculate monthly insurance payments when considering what kind of car you can afford.
• Maintenance. Vehicles are bound to experience problems from time to time -- be it as simple as a broken windshield wiper or as complex as a blown motor. Because of this, maintenance costs can vary greatly. It’s wise to always be prepared, and maybe even keep a separate maintenance fund for rainy days.
• Paperwork. Keeping title, registration, and any other relevant paperwork for your vehicle up to date is going to require administrative expenses from time to time: be prepared to shell out about 100 bucks per year on this, depending on what kind of vehicle you use and what purposes you use it for.
• Gas. Fuel-efficient cars aren’t popular just because people want to reduce their carbon footprints -- they are also gaining traction because most American households spend upward of two hundred bucks per month on motor fuels.

 

Are you having trouble keeping up on car payments or other important financial responsibilities? If debt has taken control of your life, it is important to understand that you have options. Visit Madison Monroe and Associates online today to learn more about how you can get out of debt quickly and effectively.