Introduction: Costs of owning and operating a vehicle
As most consumers, your decision to buy a house or a car might be the most expensive purchase you make in a lifetime. When looking to purchase such an important asset, you could carry on this acquisition in one of two ways: Buy what you LOVE and have been dreaming for many years and then struggle to make the payments OR Think RATIONALLY and logically before you sign on the dotted line.
The first thing you should do is consult your budget. Do your market research and steer your way to a good deal that serves your intended purpose for the asset. Identify costs associated with owning and operating a motor vehicle, then think about if you can afford comfortably based on your income. Following is the most relevant information you need to consider as you purchase your next vehicle.
Costs of owning a car:
- Initial purchase price
- Financing costs and interest over the life of the loan
- Registration and title costs
- Emission inspection (in many states)
- Sales tax
- Insurance and warranties
- Scheduled maintenance
- Storage or garage spaces (in many cities)
Costs of operating a car:
- Gasoline, oil, and fluid
- Parking and tolls (in many states and cities)
- Unexpected repairs and maintenance (such as tires, windshield breakage, etc.,)
- Tickets (speeding, parking close to a hydrant, etc.,)
For successful decision making to buy your car, the five chapters below will help you. Let's get started!
Chapter 1. How do I decide on the right purchase?
Chapter 2. How do I shop for a car loan?
Chapter 3. How do I prepare for the buying process?
Chapter 4. Types of auto insurance coverage
Chapter 5. What are warranties and extended warranties?
This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com.