If you have made a decision to buy a new car, its time you harm yourself with as much information as possible. Don’t be in a rush to make purchasing decisions. The real cost of buying and owning a car involves more than simply a big rebate, an agreeable monthly payment, and a competitive price. In addition to all other charges, the cost of owning a car is determined by the following factors;
1. Upfront cost
Once you have decided to buy a car, you will, without a doubt, have to pay for it. You can either pay the whole cost upfront or opt for a financing deal. Whichever way you may choose, expect at least to pay some amount of down payment before you drive the car.
2. Financing charges
When a person finances a car, a monthly payment is made for a predetermined number of months. The monthly payment amount may vary depending on the size of the down payment, the length of the term and the interest rate. A lower interest rate is offered to new cars while used car buyers pay a higher interest rate. You may take in a personal loan or dealer financing and thus it is important to factor in the repayment terms.
3. Fuels costs
While online, some sites can help you get an estimate of the fuel consumption you can spend in a given month. These monitoring websites usually have a real MPG section where drivers have reported now many gallons per mile they get.
Government websites have information on how much you need to pay for road tax. You can as well search for cars in a particular tax bracket. These car taxes depend on car’sCO2 emissions and also the standard rates.
Other charges you may be required to pay include car insurance, servicing charges, parking permits and tolls and other spending.