Experienced car buyers know that the costs associated with buying a car are more than just a down payment and your monthly payment. While those are important costs to consider when upgrading your car, there are a few other costs that need to be considered. When determining the cost of your newer car, consider the following:
- Insurance Costs
- Maintenance/Repair Costs
- Taxes, Registration, and Other Fees
Upgrading your car can result in a higher monthly payment, but this premium will still be less than buying a brand-new car. The reason for this is fairly straightforward: an older car is less expensive to fix if you get in an accident or any issues arise. Even vehicles of the same make and model, insurance costs can vary depending on things like the kind engine. When considering your insurance premium, make sure you are getting the most accurate quote possible. Include the make, model, year, and mileage when requesting your insurance quote.
Also, keep in mind that there are a number of personal factors about you that an insurance company will take into consideration. These factors include your driving record, your age, your marital status, and your employment status (i.e. if you are retired). Calculating your monthly insurance payments should be one of the first steps in deciding if you can afford the type of car you are wanting to purchase.
A newer car typically requires less maintenance and that can be a draw to buy a pre-owned car, but it is important to remember that all vehicles will need some maintenance.
One of the potential benefits that may come with buying a newer car is a warranty period. A long warranty period can help protect car buyers from the additional costs that come with repairs and routine maintenance. At Drive Casa we provide complimentary oil changes for the first year, as well as a limited warranty which can be a good deciding factor between dealerships.
Taxes, Registration, and Other Fees
Before you shake hands and make a deal, make sure you receive a final price offering that includes state and local sales tax, department of motor vehicle (DMV) registration fees, and a documentation fee. State and local taxes are dependent on where you buy the car and can be anywhere from a few hundred more dollars to additional thousands of dollars. DMV fees are the cost to register a new car or to transfer the registration into your name for a used vehicle.
These costs will depend on the actual vehicle you purchase as well as a variety of personal factors. Lastly, the documentation fee is a set price in some states but in others, the dealer can charge whatever amount they think they can get away with.
While there are more costs that are associated with buying a car, these factors are a good place to start as you begin your car buying journey. Arming yourself with all the knowledge of the car buying process and pricing will help make the process as easy as possible. For more information about your used car and financing options, contact Drive Casa today!
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This entry was posted on Monday, September 23rd, 2019 at 7:21 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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