When buying a new car, think about unexpected expenses (i.e. car insurance costs can vary across car models, gas mileage, reliability, etc.) — don’t only look at the sticker price. Before you make a decision on which car is right for you, think about other expenses that come with a new car smell: car insurance, gas mileage, reliability, attractiveness to thieves, etc. Consider these five unexpected costs when buying a new car:
Car insurance: Different car makes and models have different insurance costs for the same coverage. The pricier and “sportier” the car is, the higher the insurance. There is a big difference in the monthly insurance costs of a red Ferrari convertible and a white Honda sedan. Before you buy a new car, check out a few personalized car insurance quotes to determine exactly how much the car will cost you.
Gas mileage: With gas prices rising to ever increasing heights, more Americans are realizing that a car’s mileage can make a big difference in their monthly budget. If you drive 200 miles a week and gas costs $3/gallon, a car that runs on 30 miles per gallon will cost you $20 per week. A car that runs on 15 miles per gallon, however, will cost you $40 per week. Fueleconomy.gov has estimated mileage information for new and used cars.
Reliability / maintenance costs: When you write the check for a new car, the costs have only started. Cars with a good warranty and reliability reviews will cost you less over the lifetime of car ownership, whereas the least expensive cars would not be the best deals if they break down frequently,
Safety: While this is not a direct cost of the car, when you have an accident you’ll have to be in a sturdy car with updated safety features. The good news is that with the technology today, you can find affordable vehicles that offer adequate protection.
Warranty: Most new cars (and many certified used cars) carry a factory warranty. Warranties guarantee that the manufacturer pays for costs for repairs incurred within a certain mileage or year range, whichever comes first. When comparing cars, be sure to look into the fine print on the warranties. For some cars, maintenance is covered; for others, not. Warranties do not cover every type of repair, but they do provide value and some peace of mind to owners.
It is important to get a good deal on your new car, the cost of a car isn’t limited to just the initial purchase price. Keep these costs in mind so you don’t get an unpleasant surprise when you calculate the true cost of your car!
Well Heeled is a guest blogger from WellHeeledBlog. In exchange for sharing this content, the Allstate Community has compensated her via cash payment.