It should go without saying that the sticker price on a car isn’t the only fee to consider when purchasing a new car. You know you’ll need car insurance, of course. You’ll also need to pay for the occasional oil change or tire change. Beyond some of these obvious ones, there may be some hidden costs that you had not considered- and some of them can get quite pricey! Think about the following:
Financing
More than likely, you are not buying your new car with cash or writing a check for the full amount. This means you’re getting a form of financing to be able to drive away with it. The difference between a low-interest rate and high one can make a huge difference in what you end up paying out of pocket for the vehicle, especially over the course of a five or six-year loan. Read all the fine print before you sign, and pay close attention to the details of your loan!
Depreciation
Depreciation is a decrease in the value of your car due to wear and tear plus simply not being brand new anymore. In fact, the value of your car drops as soon as it’s purchased and driven off of the lot. A new car will lose 15-20% of its value each year that you own it. If you plan to only drive it a year or two, you may end up losing money on the purchase.
Gas Prices
Gasoline prices fluctuate based on several factors. It’s impossible to know what gas will cost three months from now, much less three years from now. If your budget is stretched thin to purchase a new truck with a big tank and poor gas mileage ratings, the price of gas going up to $1 a gallon could be all it takes to put you in the red. Consider a more fuel-efficient vehicle if you can’t afford any more than you spend now on gasoline.
Don’t let the prospect of hidden fees stop you from purchasing a car you really need, really love, or both! When you save money on your car insurance by being covered through Pronto Insurance, you’ll have the extra funds to cover items like gasoline. You can have the car, plus have the money!
