Owning a Used Car: How Much Can You Expect to Pay Each Month? | Findlay Acura Henderson NV

If you are tempted to cut corners on the purchase of your next used vehicle to save money, you may want to reconsider. Even though you can often find deals to save money up front, it usually comes back to bite you.

Simply put, getting a good deal on a used car spans beyond the purchase price. You also must consider the little things that accompany the monthly payment such as insurance, gas, maintenance and repairs. This may seem like a lot to afford, but it doesn’t necessarily mean you won’t be able to afford the used car of your dreams.

The costs of owning your ride is decreasing as time goes on. On average, the monthly operating and ownership costs associated with owning a sedan is $739.67 (or $8,876 per year), according to a recent report released by AAA. Operating costs include gas, maintenance and tires whereas ownership costs include full-coverage insurance, license, registration, taxes, depreciation and finance charges.

Here’s a detailed breakdown of their findings by vehicle type, based on a 15,000 annual mileage:

If you are blown away by these figures, don’t start worrying yet. Here are some things to consider when shopping that can help you save later on down the line:

Gas

Wouldn’t it be grand if all cars could run off of oxygen? Unfortunately, cars need gas, and gas is expensive. Even hybrids require gas to function. Bummer.

So, when you’re shopping, you’ll need to pay attention to the fuel economy ratings, both on the highway and in the city. Put this expense into your car budget, and see how often you can afford to fill your tank. Even though you can’t control gas prices, you can control how much you spend to fill up your tank each week.

Maintenance

Extended warranties are great, but they typically only cover major repairs. That means you’re on your own with the day-to-day maintenance. It’s probably not a good idea to pick out the shiniest model on the lot without first taking a moment to figure out the anticipated maintenance costs. 

Generally speaking, the older the model and the higher the mileage, the more costly the maintenance. You also might want to get the maintenance records to see if the vehicle was properly cared for by its prior owner.

Tires

Don’t forget to take a peek at the tires. If they are extremely worn, they will need to be replaced, which can set you back hundreds of dollars out the gate.

Insurance

Besides the cost of the monthly payment, car insurance is a top expense for your car. Unfortunately, it’s illegal not to carry coverage if you live in any state except for New Hampshire, so insurance is an expense you can’t avoid. But, the year, make and model of your car can affect the cost of your insurance. 

Depreciation

Unless you seriously intend to drive the vehicle until the wheels fall off, you’ll want to purchase something that holds value. Otherwise, be prepared to fork over the difference between the sales price and what you owe when you want to sell or trade it in for a new set of wheels. Don’t let bargains on the purchase price fool you. Before putting any money down, look at the current asking price compared to older models to gain some insight on depreciation. And, steer clear of rebuilt or salvaged vehicles if you intend to earn any equity in your vehicle.

Bottom line, there is more to owning a car than just the car payments. You need to set a budget that includes all of the costs so you can see what you can reasonably afford.

Five Habits that will Ruin your Vehicle | Findlay Acura Henderson NV

Avoiding these habits can go a long way in preventing an expensive repair bill.

Most things you own will last longer if you take care of them and treat them well. Your car is no exception to this rule. While neglecting your car may seem harmless in the short term, regular neglect and mistreatment will add up and will reduce your car’s lifespan. To keep your car running longer and stronger, avoid these five harmful habits.

1. Delaying regular maintenance

Regularly maintaining your car is vital to your car’s longevity. Regular maintenance includes oil and filter replacement, as well as transmission fluid, air filter and brake pad care. Every vehicle manufacturer specifies a different maintenance routine, which can be found in your owner’s manual. While regular maintenance requires you to invest some time and money, it’s peanuts compared to the cost of a new engine or transmission.

2. Ignoring dash warning lights

When a warning indicator lights up on your dash panel, it’s important to address the problem immediately. If you don’t know what the light means, check your owner’s manual or call your mechanic. Dash warning lights can alert you to some very serious problems, such as a coolant leak, which can cause your engine to overheat. A simple preventative repair can often prevent a large problem down the line.

3. Shifting while moving

The transmission is one of the most complex and expensive parts in your car and it’s important to use is as it was intended. Be careful not to shift from drive to reverse or vice versa while the car is still moving. This “jerky” shifting places excess strain on the transmission’s internal gears and can instantly destroy it.

4. Jerky driving

We all know someone who accelerates wildly on every straightaway only to brake hard at a traffic light or stop sign. This type of driving won’t destroy your car immediately, but will cause your engine, transmission and brake system to deteriorate much more quickly than intended. Cars that have been abused will have premature fluid leaks, broken seals and mechanical problems.

5. Putting off tire replacement

Tires for some cars can be expensive, so replacing them is an unwelcome cost. Driving on bald tires is very risky, however. If a tire blows out while you’re driving, you can lose control of your vehicle and have a serious accident. And if you drive with bald tires in the rain, the risk of hydroplaning goes up tremendously. A new set of tires may seem pricey, but probably costs less than your car, and even less than your insurance deductible.