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So, you finally got your driver's license, and now, you want to have a car — cool!
But how much money really goes into having a car?
Well, yes! This is because you'll need to spend money on some basics to have your vehicle legally and safely running on the road.
Paying For Gasoline
Unless you have this kid's car.....
...you'll have to pay for gas, and the amount you spend will vary depending on:
The type of vehicle you have — some will need more or less gasoline per kilometre.
How far you drive on a regular basis — is your home far from work?
How often you use your car — will you use your car every day?
In general, most people spend about$100 to $130 on gas every month. But...
Choose a car that's economic — one that uses less gas per kilometre. Find out how many litres of gasoline it needs per 100 kilometres.
Use your car when it's really necessary. If you can walk, bike or take public transportation to work...do it! You'll save on both gas costs and parking fees.
Quiz
Marvin lives far from his job. What's the best thing he can do to save on gas?
"Park and Ride" would be the best option, because he would use his car less. Buying a new car is very expensive.
Did you know?
Insurance
You have to be prepared in case something goes wrong, right?
In this case, insurance is your best friend! It's also illegal to have your car on the road without insurance, so there's no way around this.
You can expect to pay between $1,250 and $1,500 a year to insure your car — roughly $115 monthly.
But there are a few things you can do to lower your insurance payments:
Shop around! Talk to different insurance companies, ask for quotes, and compare them.
Your monthly premiums might be lower if the deductible is higher.
Imagine you get into an accident and it'll cost $3,000 to get it fixed. If your insurance policy says that your deductible is $600, it means you'll pay that amount, and the insurance company will pay the remaining $2,400.
Quiz
Lynn is a new driver, so her insurance payments are quite high. How can she make them a bit lower?
Choosing a higher deductible will bring down her monthly premiums (but she'll pay more in the event of an accident). She can also try to find a better rate with a different company. Cancelling her insurance without replacing it will mean her car won't be legally allowed on the road. An older, cheaper car might have lower insurance premiums, but it depends on the make and model, so it's not guaranteed (Pace Law, "How to decide auto insurance deductible", 2019).
License & Registration
Did you know?
Maintenance
Well, a car needs some regular service so that it will keep functioning without any big problems. It's wise to budget about $112 a month for maintenance.
Oil change every six months or 5,000 Km
New filters once a year
Tire rotations every 7,500 km
Checking & replacing lights when necessary
Quiz
How can you save money on the maintenance of your car?
If you learn how to change the oil, you will save money on the labour. But keep in mind that rotating and changing tires or replacing filters might be best left to professionals.
Did you know?
Let's Do The Math, Shall We?
If we add it all up, you'll probably need about $350 per month to maintain and use your car on a regular basis. If you borrow money to buy a car, you need to add your loan payments to that.
Here's a breakdown:
Did you know?
Take Action
Still interested in getting a car? Get on board!
This Byte has been authored by
Priscila Magaldi Netto
LX & UX Designer