The real cost of owning a car
NEXT to buying a house or car is often seen as one of life’s major milestones. For those tak the romance of buying a car can often blind people from the - bilities that come along with it.
be prone to just considering just the monthly amortization of the car you have in mind and using that as the sole basis for purchase. For those window shopping or those who are help you avoid some of the expenses I had overlooked so that ownership does not be you enjoy. For those who have successfully navigated repay considered during purchase.
Low down payments and low interest rates on longer terms
“There’s no such thing as a need to take on some kind of those fortunate enough to be in circumstances that allow for be applicable to you. Low down don’t come without any strings attached. They’re often offset by higher monthly amortization payments spread over longer terms. If you add the down payment to the total value found you will see that you are paying much more than the Standard Retail Price (SRP) of the vehicle you’re looking at.
A lot of it has to do with the cost of money and risk that the - nies attribute to your auto loan. Some may get better interest rates than others but typically one ends up paying a premium for being able to lease a vehicle. When you calculate the total cost of repayment you should ask yourself if the value of being able to use and enjoy a car now is worth the added cost of the loan you’ll end up taking on. Do longer terms really make sense for you or do you have the savings in interest?
Being prepared for maintenance costs
One thing that is usually a part of any vehicle’s sales pitch is preventive maintenance visits. Whether that be the dealership covering your preventive mainte to 10K kilometer or the waiver of actual price of preventive maintenance becomes clear once that period is up. Keep in mind they also recommend that you check your car in for service every year
The costs of maintenance are usually proportionate to the kind of car you have purchased. - larger fees for parts and services. When you realize that the cost of checking your car in for service could run you the same amount as a monthly payment it could impact your liquidity. You can always ask your dealer for estimates on what these costs are so that you are not caught unprepared. Forecasting these expenses is important so that you can decide if you can afford the one you want versus the one you need.
Car insurance costs
Dealers often tie up with insurance providers for the sales of - year is what is often touted which dealer and/or bank you period for these policies. That period can range anywhere other instances it is really the dealer who has shouldered that they’re able to do that by making a trade-off elsewhere. Typi sure their asset is insured.
One thing that there is little to no education on is the ability to get your comprehensive insurance elsewhere. When we buy a new car most assume that we have to buy from the provider that is presented to us. insurance from is your choice. Dealers tying up with insurance providers do so to make the process of availing easier for us. But this doesn’t come without additional cost either. Shop the policies bought elsewhere many different providers out This may not be of immediate - ceeding years where you do need to renew your comprehen may actually cost you more in is that policies are costing you on average an additional P5K –
Many car buyers focus primarily on price and payment when buying a new car. Take your time to evaluate the options you have available to you so that you make the most of your hard earned money. G.I. Joe