The Amateur Financier

(It’s time for yet another guest post, sharing wisdom from around the web.  This week, it’s  a closer look at what it really costs to own and drive a car.  Alas, as most of you could easily note, the costs don’t end (and in fact, even greatly increase) once you drive the car off the lot.  Knowing what you’re in for before you drive off into the sun can be invaluable for keeping your costs as low as possible, so please, read on and learn more about what to expect.)

Learning to drive and purchasing their own vehicle can mean independence for many people. Getting out and about is so much easier without having to rely on public transport or the driving skills of friends and relatives.

Almost everyone looks forward to owning their first car. Most people are not aware of how much money a vehicle can cost over its lifetime. The first thing that must be taken into consideration is the cost of the car that the new driver desires to purchase.

Most people do not have enough financial assets to pay by cash. This means that most individuals in the market for a new car will have to rely on car loans to make the purchase.

There are car dealerships that will offer 0% financing on car loans, but this is not always the case. The loan will usually have to be repaid within a period of 3-5 years from the time of purchase.

It is usually less expensive to pay cash for the vehicle, but for most people this is not possible. Car loans are the only way many people are able to afford purchasing a new car.

The new car will now have to be insured against accidents. This yearly premium can differ greatly depending on where you are living. Many locations offer the option of monthly payments to cover the costs over one year.

Car insurance has to be renewed every year. Vehicle registration has to be renewed every year and this carries a price as well. Fuel costs are probably the most expensive fees associated with owning a car.

Depending on the size of the vehicle and fuel tank, it can take over a hundred dollars to fill up. Fuel prices fluctuate quite often and this is due to the price of crude oil being affected by so many global events.

The trend seems to be towards ever more expensive fuel rates and it does not seem to be letting up. This is an ongoing expense that no one can get away from.

The more driving that is done with the vehicle the higher the monthly fuel charges will be. Even economical models still need to be refueled on a regular basis.

The new vehicle should be regularly checked and maintained to keep it in good working condition for many years. Vehicles should ideally be taken into a garage annually, if not more often, to make sure all the systems are working at optimal levels.

This service will incur a charge, but it is far better than letting the maintenance slide and being faced with broken down parts. When the car has reached a certain age and mileage it is often found that parts will need to be replaced.

It may be found that a new alternator is required, or perhaps the car battery needs replacing. If the car breaks down it will not only need to be taken to a garage but it will also need the services of a tow truck to get there.

The car will need to be cleaned regularly to keep the outside looking new and shiny. The car owner may not be physically able to wash the vehicle and this means paying for a car wash.

Driving is a privilege and it comes associated with certain costs and fees. These costs are something that every new driver should be aware of when purchasing their first vehicle.