Five expenses has not to forget our self Budget

Five expenses has not to forget our self Budget

We all know that a car is not an investment, and it generates a lot of recurring expenses. That said, many have no difficulty in planning their car payment in their monthly budget, but we also tend to underestimate the cost of ownership associated to our new car.

Of course he will pay for gas, insurance, maintenance and registrations, but these costs are rarely taken into account when we shop our next vehicle. Be careful, because they are not negligible and may even be superiors to the monthly amount of our auto financing or leasing.

Here are five expenses not to forget when we plan our budget for our next vehicle.

1. The essence

Unless you buy a 100% electric vehicle, the fuel necessary to operate our vehicle will always consider in our budget. It is fairly easy to estimate our monthly fuel expense if we know roughly how many kilometers we travel and how many liters of gasoline per 100 kilometers this vehicle consumes.

For example, suppose a vehicle that uses an average of 9 liters per 100 km and 500 km cover 1 per month. If the price of a liter of gasoline is set at $ 1.25, the cost per month will fuel $ 168.75 (1 500/100 x 9 x $ 1.25).

2. Insurance

The amount has to envisage for our auto insurance will be determined largely by our driving record, the protections we choose, the vehicle we buy and our age. It usually vary between $ 50 and $ 150 per month.

3. Maintenance

The maintenance costs vary from one vehicle to another and some manufacturers offer oil changes and basic maintenance free. Never mind, we all know that nothing is actually free in life and that even if our vehicle does not require much maintenance, there will be all the same annual cost to ensure that our self remains in good condition.

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You can estimate maintenance expenses by contacting the service department of a dealership and informing you about the price of an oil change and a full maintenance. You can also check with members of your entourage who have already been owners of a similar vehicle to the one that interests you.

4. The registration and license

Unless you have a car powered by an engine cylinder is very strong or have accumulated violations, license renewal fee of licenses and registrations are not very high. That said, they are required then we must consider them all the same.

5. Tires and other needs

You will not have to buy tires every month, that’s obvious. It is even possible that you do has to buy a set of summer tires and other winter while you are owners of the vehicle. It may be that you have to buy winter wheels, and perhaps new wipers, and why not a new battery, and ticketing, parking and office …

The idea here is that the tires and all other expenses of the genre can reach several thousand dollars over time. If we do not want surprises, it is better predict a monthly amount to be set aside until such time as we need it.

If we calculate all annual expenses such as tires, maintenance and registrations and that we bring all on a monthly basis by adding gasoline and insurance, the cost of owning a quite normal vehicle can easily approach 500 $ per month. All this does not take into account the payment of the same vehicle.

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The good news is that by informing us before buying, we can have a precise idea of ​​these costs and better plan our budget.