If you are purchasing a car, you will most likely have a figure in mind of what you’d like to spend. However, just like a house, the cost of the item itself is only a component, and if you are serious about buying a vehicle, you have to understand all relevant factors. Below are some points to help you understand exactly what costs are involved – you might be surprised!
Add it Up
Breaking costs down and adding them up is the most beneficial way to understand all the costs involved in buying a car. This will help you determine if it’s something you can afford. Using a financial calculator through an established financial institution such as Heritage Bank will allow you to see exactly what costs are involved when taking on car loans.
The One-off Costs
The one-off costs are the easiest to discover, as they are usually the only ones that people consider. It’s important to understand though, that even the purchase price of the car has its own components. For example, the advertised cost of the car may not include the features you want on your own vehicle. All these extras will add to the final figure, including car mats, automatic transmission, colour, seat covers and reverse parking features.
The next stage of understanding the costs of buying a car is the regular payment instalments you will have to make in order to keep the vehicle on the road. These costs will have to be paid as part of the initial purchase as well as every year that you drive the car. These costs include insurance, car registration, and regular service and maintenance costs.
The cost calculation doesn’t stop here though. The extra miscellaneous expenses to keep a vehicle running may not have to be paid at the initial purchasing stage, but they are still important costs to consider when deciding if you can afford to buy a car. These costs include petrol, washing and cleaning, unexpected maintenance, and accidental damage – and they can occur weekly, monthly or yearly.
Ask for Help
If you’ve got to this stage of the vehicle buying process but are still confused about what costs are involved, speak to a professional financial consultant about your buying issues, and have them explain the process to you in detail. This way you can go into a dealership with a level head and not be stumped by any surprise costs.
After considering all the above costs, it’s not hard to see why people become so attached to their cars and treat them more as humans than as vehicles! A lot of time, energy and money goes into maintaining a working car, so make sure you take all this on board when assessing the costs involved in buying your own.
What were some unexpected costs you or someone you know encountered when purchasing a car? What do you wish you knew before buying your car? Share your stories and answers by commenting below.