Have you recently purchased a car? Or, maybe you’re doing some car shopping right now! I have done a fair share of buying and selling in my day when it comes to vehicles, and I’m convinced that there’s one expense that people just don’t think about when they make their purchase.
Nope, It’s Not That!
So what do people typically think of when they buy their cars? One of the most popular factors is obviously the purchase price. If you only have $5,000 to spend on a car, you obviously aren’t going to waste your time looking at brand new cars that cost $22,000. No, you’re going to take a look at the used dealerships or Craigslist to find a car that’s most suited for you. While the purchase price is obviously important, it’s only a one-time expense. It’s those reoccurring expenses that will kill ya!
Ok, so now you think you’re on to me. It must be the cost of gas right?! Nope. It is true that gas can absolutely rob your hard-earned money, but most people do actually think about this fact when their purchasing a new vehicle. Heck, I know I wouldn’t be driving around a little 2001 Honda if I didn’t think about the cost of gas!
The more savvy buyers will think about dependability. After all, who wants to buy a lemon? When problems keep arising with your car, it not only costs you money at your local mechanic, but it also puts your job in jeopardy. There aren’t too many bosses out there that like to get a phone call each month that their employees are having car trouble and won’t be able to come into work that day. It gets old pretty fast. While only the savvy buyers will think about the dependability of their car, I still believe that it’s not the most forgotten expense when it comes to making a car purchase.
The Monthly Expense
When you buy a new (or used) car, what is the first thing that you have to do before you put it on the road? To abide by the law, you must insure your new vehicle. This is one of the most forgotten expenses when people make their initial purchase. Sure, they might have the cash to buy it, and they may even have the gas money to get it to work and back, but what about the insurance? No one really has a clue what vehicles are more or less expensive to insure. Even insurance agents have to punch the make and model into their computer to find out! But, it’s this expense that can really screw up your budget.
In order to keep your car insurance bills down, it’s best if you find a vehicle that’s safe, inexpensive to repair, and unappealing to theives. If you pay careful attention to your car insurance costs, you could easily be saving yourself $50 a month, or $600 a year!
Do you think about car insurance when you buy a new car?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.