How to financially prepare to own a car

To me, buying a car means accepting responsibility. It's more than just driving. You need to take care of the vehicle to give you the best value. Neglecting your obligations can mean wasting your money. What you want is to get the most out of your investment. And yes, for me and most of us, a car is one. For most families, including one-person families, a car is much more than a depreciable asset.

Due - Due

Your vehicle is your gateway to freedom. It does more than get you from point A to point B. It facilitates access to fresh, healthy food, on-time appointments, and the opportunity to earn an income. Your car is your wings to the world. With something as vital as your means of transportation, it's crucial to make sure your vehicle's maintenance is at the forefront of your mind. What works for me is budgeting for my necessary car expenses, expected but unknown car expenses, and unforeseen expenses.

When it comes to buying a vehicle, I find it essential to take into account all the costs that will possibly come into play during the life of the vehicle to get a real idea of ​​the financial burden expected. I say financial burden because while a car can be a blessing, it can also be a burden.

Planned car costs

To prepare yourself financially for the purchase of a car, you must first know what you are going to spend.

Fuel costs

Unless you opt for an electric vehicle, you should expect to pay for gas. It is one of the most basic expenses for our vehicles. AAA estimates that the average 2021 model car costs 7.79 cents per mile. The average round trip to work is approximately 40 miles. Depending on the distance traveled, you can expect to pay around $3.12. Of course, that's before taking into account the increase in gas prices.

Because I work remotely but drive a lot on weekends, I usually only budget $200 a month for gas expenses. Sometimes I have money left over, which I then save for car trips and the months when I drive more often. You can get a better idea of ​​your monthly fuel expenses by downloading an app like Drivvo.

Maintenance

Remember the Drivvo app I mentioned earlier? You can also track your car maintenance expense history to get a monthly breakdown of what you spend on your car. As an Automoblog employee, I know how important it is to take care of the maintenance of your vehicle. I was also young and neglected the maintenance of my vehicle to my detriment.

You should find a mechanic shop you trust in your neighborhood and drive there to have your vehicle serviced. If something is wrong with your vehicle, you will trust their expertise on your specific vehicle.

Car insurance

Most states require that you only have liability insurance for your vehicle. Automobile liability insurance covers property damage and injury to another person caused by an accident for which you are at fault. This type of coverage is usually divided into two parts. Bodily injury and property damage. Property damage pays for damage to other people's property and bodily injury pays for those injured in the accident.

This is the minimum insurance you need to drive your vehicle.

Registration and fees

National regulations require vehicles to be registered. This data is used for tax assessment or even to track down a criminal. It is an essential requirement for every car owner.

The cost may vary from state to state, but is usually around $40. You will need to renew the registration regularly. Again, this depends on where you live, but it's usually on a yearly basis.

Expected but unknown costs

Another item I try to budget for is expected but unknown costs. I budget for these items in different ways. As I mentioned earlier, I have a monthly budget for fuel expenses and whatever is left over is saved for overage for months when I spend more, like months when I go on trips and vacations. Here are some other expected but unknown costs that should be considered when considering owning a new vehicle.

Car repairs

Eventually, even the best-maintained vehicle will need repairs. One way to prepare for this is to create a fund for your eventual car repairs by setting aside a monthly amount for these repairs. According to how things work