Finally have enough to buy your own set of wheels? If you’ve found a car in your price range, that’s great. But before you sign the paperwork, make sure you’ve budgeted enough to cover the additional expenses of owning a car.
Tax –You also pay a percentage of the purchase price, perhaps from 2%-6%, in state taxes.
Insurance – Before you can drive a car off of the lot, you’ll have to prove that you have insurance protecting you and other drivers in case of an accident. Cost: up to $2000 a year for young drivers.
Registration and title – For most vehicles, you must register it with the state Department of Motor vehicles and apply for a title proving you own the car. Cost: $20-$100.
Tags – You must buy a license plate from the Department of Motor Vehicles, which may cost about $25 for traditional plates or more for specialized or customized plates.
Gas – Your car should come with a full tank of gas, but make sure your budget covers regular fill ups.
Maintenance – Whether you’re a do-it-yourselfer or not, keeping your car’s oil changed, fluids fresh and tires checked will increase the life of your vehicle. Be sure to follow a maintenance plan so you don’t end up with surprising and costly emergency repairs.
Knowing how much having a car really costs can help you have a smooth ride now, and down the road.
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