The Unexpected Costs of Driving

As your approach the legal driving age and begin thinking about buying a car, you are probably thinking about details like what color your car will be, if it will have a quality stereo and how cool your car will seem to your friends. Most teens put a lot of thought into the purchase of their first cars but all too often, teens don’t consider the less obvious costs of owning a car. While you’re making plans to pay for your new car, you should also be planning for long-term expenses. Here are some expenses to put in your budget:

License and Registration: Did you know that it can cost hundreds of dollars on top of the price of your car to get a license plate and registration sticker from your state? Call your local Motor Vehicle Division to find out what the cost is where you live and then keep that price in mind when you shop for cars. Add it onto the sticker price of any car you’re thinking of buying and remember that you have to renew your registration once a year.

Insurance: Unfortunately, it’s very expensive to insure teenage drivers. Insurance rates drop slightly the older you are and the longer you’ve been driving, but young drivers are penalized for their age until they turn 25. You must have insurance to drive so talk to your parents about what arrangement will work best for you and them. Staying on your parent’s policy can often save money, but getting your own policy can help you gain independence. Make sure you do a lot of research before purchasing an insurance policy. It’s very important to shop around and make sure you are getting the best possible deal.

Tires: You should expect your tires to wear out every 30-50,000 miles, provided you don’t run over any nails or sharp rocks and need to replace them sooner. Each tire can cost between $50 and $100 and that price doesn’t always include paying the tire store employees to put the tires on your car. When buying a used vehicle, be sure to check on the tire condition before purchase. If the tires are worn, the owner should sell you the car for less so you can afford to go put new tires on the car.

Routine Maintenance: All cars come from the manufacturer with a recommended maintenance schedule. Whether you are buying a brand new car or a used vehicle, you should look into the maintenance schedule for the make and model of your car. Most car dealership service departments will have maintenance schedules on hand. Usually the dealer will recommend you bring your car in for maintenance several times during the life of the car. The big maintenance sessions usually take place when your car is at 30,000, 60,000, 90,000 and 120,000 miles. These visits to the dealership can cost anywhere from $200 to $1,000 or more depending on the make and model of your vehicle. Maintenance at 15,000, 45,000, 75,000 and 105,000 miles is also often recommended. Usually this maintenance is less extensive and less expensive, costing between $200 and $400.

It takes a long time to drive a car 15 or 30,000 miles, but it’s important to realize that if you want your car to last and if you want to avoid emergency repairs, you have to plan for preventative maintenance and you have to budget for it. Before you buy your car, visit a dealership and take a look at the recommended maintenance schedule for the car you’re thinking of buying. How expensive is the maintenance? Can you afford it or should you look at some other cars to see if they are less expensive to maintain?

Regular Oil Changes: A good rule of thumb is to change your car’s oil every three months or 3,000 miles, whichever comes first. Depending on the type of car you buy, oil changes aren’t usually very expensive. You can pay as little as $16.95 and as much as $60 or more, depending on where you take your car and what kind of oil you have put in. Changing your oil regularly will help your car to last longer and help you avoid costly repairs.

Gasoline: You’ve probably thought about this one, but just in case you haven’t, don’t forget that you need to buy gas to keep your car running. The average price of gas in the United States is currently about $1.75 a gallon. Gas will eat up more of your money if you buy a larger car with lower gas mileage. Smaller cars usually get better gas mileage – letting you go further on less money.

These are just some of the costs you can expect when you get your first car. Owning a car is a great privilege, but it’s also a big financial burden. Before you make a purchase, make sure you can afford not just the price of the car, but all the other costs that come with it. Your Credit Union will be able to help you set up a savings account where you can put money that you plan to spend on car repairs and maintenance. It’s a good idea to have some money saved up in case of an unexpected breakdown.