6 Important Expenses To Consider When Buying a New Car (2022)

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Buying a new car comes with a load of other expenses you might not have considered or planned for. Before committing to taking out a loan for a car, there are a few other expenses you’ll need to fit into your budget.

A new car will have a huge impact on how much you can afford monthly on your car repayment. So, check out these 6 expenses before you commit to a price.

Insurance

One of the most important expenses to consider is your car insurance. You can’t go without it, especially when purchasing a brand new vehicle. Comprehensive cover can be expensive. But the best car insurance companies will be able to give you a deal that fits you just right.

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Your insurance premiums will depend on a lot of different factors, including the age, make, model, and mileage of the car you’re purchasing. You might want to look around for insurance quotes after selecting your car, but before making the final decision.

Routine Maintenance

Any responsible car owner will schedule their vehicle for a routine service about once a year, or more often if you spend an above-average amount of time on the road.

Try to get a rough estimate on what the routine maintenance will cost you on a car before buying it. This way, you can be prepared and hopefully save up a little each month so that you have no problems paying up when service time rolls around.

Repairs

Even if you have a comprehensive car cover, you won’t get away scot-free in the case of damage to your car. In most cases, you’ll have to pay an excess amount on any repairs your insurance company covers for you. Make sure you know what that excess is in advance and be sure to always have that amount handy.

Your insurance company also won’t likely pay for cosmetic damage caused by small scrapes and bumps that were your own doing (it happens to everyone). If you want to keep your car’s exterior in perfect nick, it will be on your own account.

Fuel

Did you know that some cars burn more fuel than others? Be sure to ask your salesperson about the fuel efficiency of the models you’re interested in because you might be able to save yourself some cash.

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However, even with the most fuel-efficient vehicle on the road, you’re still going to be paying for gas. Try to average out how many miles you drive per week and add the gas for those miles to your car budget.

Cleaning

It’s important to keep your car clean on the inside and out. Not only for your own sense of pride but keeping it grime and dirt-free can help the paint last a whole lot longer.

Whether you take your car to be professionally cleaned once a month, or choose to clean it yourself, don’t forget to factor in those costs.

Admin

Finally, when purchasing a car, don’t forget that you’ll likely be paying a few administrative fees on the financing, delivery, and other details that go along with a major purchase like this.

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