There’s nothing quite like shopping for a new, “every day” car or finding that perfect vintage model that you can’t wait to get ino the garage. Regardless of original ownership, having something that is new to you is exciting and full of potential.
However, there are hidden costs of owning newer cars that should be kept in mind as opposed to buying vintage.
According to Kelley Blue Book, the average car price in the U.S. was about $36,113 at the end of 2017. Unless you buy a cash car, you’ll have to factor in interest. The amount you pay on your auto loan will depend on how much money you put down, your credit score, your debt-to-income ratio, and the length of your car loan.
You won’t feel the effects of depreciation immediately after you purchase a car, but according to Carfax, a vehicle loses 10 percent of its value once you drive it off of the lot. All cars will depreciate, but it’s something to keep in mind.
Insurance varies from person to person, but your driving record, what kind of car you own, and your age helps your insurance agent to determine your monthly rate. Shop around with different companies to find the best price or even consider combining auto and home insurance to save even more.
Accidents, scrapes, and scratches happen. According to AAA, the average amount Americans budget for car maintenance and tires is about $99 a month. Getting your oil changed on time, rotating and aligning your tires, and using the appropriate kind of fuel can help you save in the long term.
Taxes and other fees
Depending on what city and state you live in, taxes and other fees can easily creep up on you. You can expect to pay title fees when you buy a new car and license fees almost annually. Don’t forget that you will also be charged to replace or renew a driver’s license.
With older cars, parts (in most cases) are typically cheaper and insurance and registration fees usually aren’t as expensive. Plus, having a consistent “hands on” project is something to be proud of. Whether you’re buying something old (or new) remember that BluePrint Engines has everything you need to keep your ride going for years to come.