4 costs to consider when buying a car

When you’re budgeting for a new car, you need to think about more than just the sticker price. Here are four additional costs that come with owning a vehicle.

1. Gas
Trips to the gas pump can add up quickly. However, you can considerably reduce this expense by choosing a vehicle with good fuel economy.

2. Maintenance
Regular maintenance is needed to keep your car running. This includes oil changes, tire rotations, tire alignments and replacing worn parts.

These expenses usually add up to around a thousand dollars every year. However, some cars are cheaper to maintain than others.

3. Repairs
You should expect to have to pay for the occasional repair as a result of wear and tear, especially as the car ages.

Moreover, you need to be prepared for unexpected repair costs, as there’s always the risk of being in an accident. Depending on your insurance policy, this could leave you paying hundreds or even thousands of dollars.

4. Insurance
On average, car insurance costs around $1,500 a year for Americans.

However, keep in mind that insurance premiums vary depending on your car make and model (among numerous other factors). For example, cars with good safety features are generally more affordable to insure.

Some other expenses to keep in mind are the annual registration, which in most states is under $100, and the cost of the extended warranty, if you get one.