Fuel

How fuel-efficient is the car? Does it get 10 mpg or 40? What type of fuel does your car take? Regular gas for a standard car, or is it a high-performance vehicle that requires premium? Is your car a hybrid with an electric motor that will assist in city stop-and-go traffic? Did you purchase a plug-in version of the hybrid that might get better mileage on long distances? How about an electric car that can go 250 miles on a single charge? The size and efficiency of the automobile will significantly influence the cost of powering it.

Maintenance

How much does it cost to change the oil and maintain the other fluids? Can you do it yourself, or do you have to take your car to a dealer? How much are brake pads, calipers, and other consumable parts on your car, like tires? You’d be surprised how much the cost to maintain one model of a vehicle varies from another.

Repair

Because a car is new doesn’t mean it won’t need repairs. If you buy a used car, check the maintenance and repair history, if available. How many recalls did the vehicle have? Were the recall repairs done? Perhaps you could research the cost of specific components, such as an alternator or transmission, for the automobile you are considering. If the car is inexpensive to buy, it may be expensive to repair. Consider the potential or known repair costs before making a purchase.

Licensing and Registration

The age of the car might determine how often you must renew your tags and registration. Newer cars get a longer time between renewals than older cars. Does your vehicle have special plates? That could cost you a couple of hundred more each renewal if they do. Keep your title in a safe place. Replacements might cost you.

Insurance

We are experts in this area. We kindly request that you call or text us with the vehicle identification number before committing to a car purchase. Please! Why? Because EVERY vehicle has a different price for liability or full coverage. If a model tests poorly after manufacture, then the base price for insurance will be higher. Suppose the car has experienced multiple accidents or has a high mechanical failure rate and requires constant towing. Those incidents are recorded and will show up in the insurance companies’ reports to determine auto insurance prices. We’re not joking. Even if your car was stolen and recovered without damage, insurance on that car will cost you more.

We get comments all the time like, “Why is it so high? The car is old.” We aren’t insuring the car! We insure your ability to drive the vehicle in its current condition. There is a big difference. Another factor that has emerged in the last few years is: How many seats does the car have? “What does that have to do with anything?” you ask. If passengers occupy all the seats of a seven-passenger van, and the driver runs off the road, how many passengers’ medical bills will the insurance company pay? Seven! More seats in the car usually mean a higher insurance premium.

Depreciation

This cost is tough to determine. Let’s say you are buying a brand-new car. It’s impossible to know how much that car will be worth in three to five years when you are likely to sell it. What you could do is look at other years of the same models, see what they sold for new, then subtract what they are worth now. Divide that figure by the cost of the new item, and you have a depreciation percentage. For example, if a car sold for $20,000 five years ago and is now worth $10,000, the depreciation would be 50%. Compare that to a model similar to the one you want to buy, which sold for $25,000 five years ago but is now worth $15,000; the percentage would be 40%. A little better. That still doesn’t mean your car will have the same result. Perhaps that model and manufacturer have improved in quality. For math geeks, depreciation is something to consider.