Contrary to popular belief, when you set out to purchase your first car you’ll suddenly become aware of all the different things you have to pay for when buying a car, all of which will add up and increase the overall cost of your car dramatically.
Unfortunately, these costs aren’t to be avoided, so there’s no point worrying about them – though it does help to get a thorough understanding of them as soon as you possibly can ahead of your purchase so you can form a mental picture of what you’ll eventually end up paying once your purchase has gone through. Though there are many tips and tricks you can utilize when buying your first car, above all else it’s a good idea that you keep in mind the following costs that will surface very quickly:
The Car Itself
The car itself will, unsurprisingly, be the greatest cost on your list, regardless of the type (or age) of the model you purchase.
This is of course no issue as the cost of the vehicle is the one thing you would have been taking into consideration from the very beginning. One thing you will want to think about, however, if you haven’t already, is how you’re going to finance the cost of this vehicle. If this is your first car there’s a good chance you’re fairly young, and therefore won’t have the capital to purchase a car outright. For this reason, look into the cheapest car loans you can find online, as this is both an easy and smart way to finance your first vehicle purchase. Once your loan is approved make sure you pay it back on time each month, as this will reflect positively on your credit score.
Though everybody knows you need insurance, not everybody remembers this cost when considering how much they want to spend on their new vehicle. It’s also, of course, crucial to keep in mind that this will be a monthly or yearly cost (depending on how you choose to pay it), meaning you have to think long and hard before accepting an insurance policy.
The market for car insurance has exploded in recent years, with insurers and comparison sites all over the Internet vying for your attention, utilising every tactic under the sun to get you to buy from them. For this reason choosing an insurance option for your new car has arguably become more difficult than it was before the Internet came around, though so long as you take your time to figure out how these comparison tools work there’s a good chance you will end up saving money.
The amount of car tax you’ll have to pay per year differs dramatically between countries, so it would be a waste of your time to focus on one precise method in this article.
Some countries use incredibly simple systems to collect car taxes (setting a standard rate for every car in the country, for instance), while other countries favour the approach of charging a percentage of the car’s purchase price per year, with this price then reducing over time due to the depreciation value of the vehicle. Look into what system is used in your country, and try your best to figure out what your car tax will be ahead of your purchase, so to add it to your budget.
In conclusion, contrary to popular belief, when you set out to purchase your first car you’ll suddenly become aware of all the different things you have to pay for when buying a car, all of which will add up and increase the overall cost of your car dramatically.
About the Author:
Ewan Bowen is a writer for Blink Finance, a financial firm in Australia that specializes in personal and business finance. They can help you find the cheapest car loans or insurance as well as help you handle debt consolidation.
Category: Car Purchase