Don’t Forget to Consider These 4 Costs Before Buying a Vehicle – The Motley Fool

April 29, 2022 by No Comments

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Don’t focus only on the price tag when buying a new car. Consider these costs, too. 


Key points

  • Before buying a new car, you should think about the everyday costs you’ll pay to use it. 
  • Car insurance and vehicle repair costs are two examples of expenses you should research before replacing your car. 

Whether purchased used or new, a vehicle is a significant expense for most people. The price of the car itself isn’t the only expense. If you’re planning to replace your car soon, you want to make sure you consider all of the costs associated with your purchase. Find out what other expenses you should plan for when figuring out what vehicle to buy: 

1. Car insurance

Car insurance is a requirement in almost all U.S. states. If you’re paying for car insurance now, you should know the price could change when you switch vehicles. Some cars are cheaper to insure than others. 

Your insurance needs may also change. If you own the car outright, you may have less coverage. However, if you’re looking to get a new vehicle and plan to finance your purchase, you’ll likely need to boost your coverage. 

It’s good practice to price out the cost of car insurance before buying a car. Insurance rates can help you determine which car to buy. 

Check out our list of best car insurance companies to get a quote for car insurance coverage. 

2. Tire costs

Tires are a necessary part of any car. Depending on the type of vehicle you drive, new tires can add up. A larger vehicle like a truck or SUV will require different tires than a smaller vehicle like a sedan. If you switch vehicle types, you may pay more for tires. 

A recent Consumer Reports survey looked at what prices members paid for replacement tires:

  • The median purchase price per tire for sedan, hatchback, and wagon vehicles was $137. 
  • The median purchase price per tire for SUVs was $162. 

That’s a difference of $100 for a full set of tires. These costs also don’t include installation charges. 

There will come a time when you need to replace your tires, so you want to make sure you understand what you’ll be paying. Do some research before you commit to a new car.

3. Repairs

Not all vehicles have the same repair costs. Some car parts may be more expensive or rare, while others are more affordable and common. Some brands and models may be less likely to break down or need repair work beyond regular maintenance. 

Before getting any vehicle, you should research car part costs and repair costs to get a feel for what expenses you might pay in the future.

You can use Kelley Blue Book to research repair costs and typical vehicle issues by make and model to make a more informed buying decision. </…….

Source: https://www.fool.com/the-ascent/insurance/auto/articles/dont-forget-to-consider-these-4-costs-before-buying-a-vehicle/

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