6 Car Ownership Expenses That Really Add Up
These vehicles could cost you hundreds of dollars each month in insurance coverage. So, it might pay to shop for insurance before you shop for a car. For the average car, a full-coverage plan will run you $223 per month and $67 per month for minimum coverage.
Maintenance and Repairs
A number of vehicle ownership costs involve just keeping your engine running. Yet, it’s the nature of machinery that some cars are cheaper to fix than others. Hondas and Toyotas, for example, are pretty cheap and easy to repair, whereas Fords may be cheap to repair, but they break down more, so you’ll end up spending more in the long run.
European cars, on the other hand, are dramatically expensive to repair, and they’re tricky to work on, which means higher labor costs. A single headlight replacement on an Infiniti or Volvo can run you hundreds of dollars.
So, when shopping for your car, take into consideration how often the car breaks down, how expensive it is to fix and how easy it is to work on. You can review Consumer Reports to see which brands cost the most to repair.
Depreciation (It’s Rapid for Some Models)
As with maintenance and repairs, some cars depreciate faster than others, and some hold their value well for years. Much of the reason for depreciation is those repairs.
Toyotas and Hondas, for example, will hold their value for years, barely depreciating even after a decade. That Infiniti, however, or its American counterpart, the Nissan, loses tons of value almost as soon as you drive it off the dealer’s lot.
When a car depreciates, you lose your ability to make money from it when you sell. It’s an important consideration to take before you buy.
Parking
Finally, depending on where you live, you may have to pay for parking. If you have to park your car in a garage near your home that charges a monthly fee, you must add that to your budget.
Likewise, if you’ve been taking public transportation to work and now you’ll be driving, you might not realize you’ll have to pay for street or garage parking. This doesn’t even factor in the time you’ll have to take to find parking.
Be aware of these extra costs, like parking, repairs, insurance, and more, before you choose a car and buy it. Educating yourself on this topic can end up saving you thousands of dollars.
Caitlyn Moorhead contributed to the reporting for this article.
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