4 Expenses to Plan for When Purchasing Your First Car
purchasing your first car
Buying your first car is an exciting time. Being able to drive where you want and when you want to is an experience unlike anything else.
However, buying your first car comes with a lot of expenses.
Here are four expenses you should plan for when purchasing your first car.
Insurance
One of the first things you’ll need to consider before buying a car is car insurance.
Dealerships will typically tell you the kind of insurance price you may face with a particular car.
However, you won’t fully know how much you’re going to spend until you work with various insurance companies directly.
Prices vary, too, depending on what kind of coverage you want. Do you want coverage for everything? Only when it’s not your fault?
Making these decisions can help you get the best deal on your insurance at an expense you can afford.
Downpayment
Some dealerships require you to put down a downpayment before you can buy the car.
This shows that you have the money to pay for the car in the long run.
Most prefer a 10% down payment, although you’re welcome to pay more.
If this isn’t something you can afford immediately, then you may want to look for deals.
Some dealerships run special deals where down-payments are either discounted or waived entirely.
Licensing and Registration
Once you buy the car, you need to get a license and register it.
Those prices vary by state, but they can be pretty expensive if you don’t budget for it. Luckily, registration only needs to be done once.
Licensing needs to be annually, but you may be able to find ways to extend it or purchase licenses that last longer than one year.
Fuel Costs
While the dealership should give you enough gas to get home, one of the first expenses you’ll make after buying your first car is gas.
Depending on the type of vehicle and its MPG rating, you may find yourself with a gas guzzler.
That can rapidly increase the expense of owning your car over the years to come.
As the car becomes older, it may also lose more of its MPG. You may need to pay even more for gas as the years continue.
Owning your own car is worth it. You’ll inevitably be able to save on your car versus using public transportation over time.
However, these initial costs are something you want to consider before making your purchase.
Category: Insurance
