Buying a new vehicle can be exciting. You’re likely to know ahead of time what you can afford in terms of payments, but there are some other factors people tend to overlook. The pros at westgatekia.com have put together some tips to help you avoid unexpected costs after taking your new vehicle home.
Aside from your monthly payment, your insurance can be one of the heftiest costs of owning a new car. Buying a vehicle higher in value than your older model means that the repair costs after an accident will be higher, thus raising your rates. Features such as blind spot monitoring may help reduce the premiums, and having a car with a higher safety rating may help. Bear in mind that most lenders require full coverage on a financed vehicle.
2- Gas Mileage
You need fuel to power your new vehicle. Shop around and see what vehicle can offer you the best gas mileage based on your driving habits. Even cars of similar size can vary greatly in terms of miles per gallon. New cars have average fuel economy statistics readily available.
Routine maintenance is required to keep your vehicle running smoothly. Think of oil changes, tires, brakes, and tune-ups. The cost of these may fluctuate based on the model. You also might run into unexpected mechanical failures. Most new vehicles come with a warranty from the factory, but they don’t cover all maintenance and only last for a certain length of time or mileage.
4- Type of Gas Required
Buying a vehicle that requires premium fuel means filling up may be more expensive. Owning a diesel vehicle could mean going out of your way to find a pump, as diesel isn’t always available at all gas stations. Be sure to research the type of fuel your new vehicle takes to avoid unexpected gas costs.
Don’t forget to pay Uncle Sam! As with any purchase, you are required to pay sales tax on your new vehicle at the time of purchase. This one-time fee is usually factored into the total price at the dealership, whether you pay in cash or finance your car.
6- Down Payment
If you plan to finance, be prepared to make a down payment. Some lenders will require you to come up with at least part of the total price of your new vehicle on your own. The down payment could be satisfied by trading in your current vehicle, paying with cash, or both.
7- Interest Rates
Interest rates fluctuate based on factors such as credit score, year and model of the vehicle, and the lender you use. Be sure to shop around for the best rate for lower monthly payments on your new vehicle.
8- Car Tag Fees
Car tag fees are the cost of registering your vehicle with your state. Vehicle registration is an annual fee to keep your vehicle legally on the road. Your dealership usually factors the first year of registration costs into your loan or purchase price, but future years will be your responsibility.