The 5 Biggest Costs of Owning a Car 

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The 5 Biggest Costs of Owning a Car 

 

Buying your very first car can be an exciting experience and is something that almost everybody looks forward to. However, it can also be extremely daunting. The fact is, vehicles are expensive and will be one of your most significant life costs. So before you commit, it’s important to be aware of how much they will put you out of pocket. In this article, we will take a look at just five of the biggest costs of owning a car.  

Want to learn more? Then keep on reading.  

Initial Price  

Obviously, the highest expense of owning a car is the initial price. Whether you choose to buy new or used, you’re always going to have to spend thousands, especially if you want to ensure you get a good and reliable model. Of course, there are options available if you can’t afford to pay outright, such as leasing. Check out these Land Rover Discovery Incentives to see their offers. 

 Depreciation   

While depreciation might not be the first expense you think of, it’s undoubtedly one of your most significant. The minute you drive out of the lot, your vehicle is already starting to lose value. If you plan to upgrade shortly, you will not likely make back what you initially paid. Even if you consider trading it into the same car dealership, the losses are substantial.  

Maintenance and Repairs  

In 2017, AAA found that new vehicles cost around $1,186 a year to maintain. Since then, the number has increased, and pre-owned cars are even more expensive as they are prone to wear and tear. From new tires to regular mechanic checks, washes, and fluid top-ops – it can seem as though it never ends, and the reality is, it doesn’t. In order to drive safely, you need to ensure your vehicle is in good condition.  

Insurance  

Insurance is crucial for car owners and is one of the most important things to possess. Alongside protecting your vehicle, it provides coverage of damage to other people’s property. Fully comprehensive plans can cost up to almost $2000 each year, depending on the company. It’s one expense that you really can’t eliminate. 

 Gas  

Finally, one of the last things you will need to prepare for is gas. This will be your highest cost and is something that will come out of your account every week. The more you drive, the more you will have to fill up. If you want to save money, you’ll need to review the stations you use and keep an eye out for the best deals. It’s also worth checking out some different ways to increase your fuel efficiency when driving. 

 Final Words  

And that’s it. These are just five of the biggest costs of owning a car. Now that you know what to expect, you can start working towards improving your budget and reducing your transport costs. With the proper preparation, you can enjoy the benefits of vehicle ownership at a much lower price point.