The act of purchasing a new set of wheels is an exciting adventure. At least you are assured to be the first owner. You get a car that is in an excellent condition, and you don’t have to worry about towing services. However, it is essential to consider the hidden costs of buying a new car. You need to ensure that there are no extra charges before you sign the sale agreement.
Most people think the cost of owning a new car includes the finance charges and the actual cost of the vehicle. The truth at hand is that there are many other costs involved. No matter where you purchase the car, there are some other additional charges. These are the costs we are going to look at today.
Registration fees are one of the costs most people know about, but they do not attach the charges to the car buying process. In most cases, registration fees that are charged by a state depend on the price of the vehicle and the amount of taxes levied on the vehicle. These prices are fixed by a state and are non-negotiable.
Emissions Certification Fees
There exist few states that do not require emission certification. However, many states require car owners to test and get certification to show that their vehicles meet state and federal guidelines for emissions. Emission certification fees are non-negotiable.
After you purchase a car, one of the most expensive issues you will have to deal with is insurance. Car insurance premiums depend on a couple of factors including age, car owner’s driving record and the value of the car. Additionally, insurance premiums are determined to depend on the car owner’s area of residence. Different car models attract different insurance rates.
Apart from fueling, car owners will need to consider parking and maintenance fees, and other associated charges. When you have a car, you will be traveling around the country doing business, exploring places and visiting friends. In all these places you go, you will have to deal with parking fees. The number of cars in a particular country continue to be high making the demand for parking spaces to be high. As you drive your car, you will also need regular maintenance to keep it in a good condition.
Average Maintenance and Repair Costs
As your vehicle gets older, the price of maintenance goes up. A vehicle that is less than four years old has minimal repair bills. However, cars that are more than eight years old have annual repair expenses exceeding $1,000 per year. To stay safe on the road, it is advisable to buy a car that has a more extended warranty as you are assured protection against huge repair and service bills. The last thing you will need is to buy a car that loses its value quickly. A vehicle that depreciates fast can be a burden to you, and you should avoid such cars.