How To Calculate Vehicle Cost of Ownership in Ocala, FL

How Much Does Owning a Car Cost?

If you're in the process of purchasing a new vehicle, it's important to note that the cost of ownership goes beyond just the monthly payments. There are several factors to consider that can add up quickly, making it difficult to stay within your budget. That's why we're here to help at Jenkins Acura. Our expert team can help you calculate the cost of owning a vehicle, ensuring you can make an informed decision that fits your financial needs.

Typical Car Ownership Expenses

When deciding whether you can afford to buy a vehicle, it's important to consider all the costs associated with owning one. By doing so, you'll be equipped with the knowledge you need to make an informed decision and feel confident in your choice. To find a car that meets your needs and budget, it's important to understand what goes into purchasing a vehicle.

Monthly Car Payment

Most people base their purchases solely on the monthly payment, which can cost you more in the long run. According to Bankrate’s January 2024 report, people pay an average of $726 monthly. Instead, consider factoring in financing costs along with the purchase price to save more money over time.

When it comes to buying a vehicle, the interest rate of your loan is an important factor to consider. A higher interest rate can significantly increase your overall expenses, making your loan less affordable in the long run. For instance, a $30,000 car with a 6% interest rate spread over 60 months can result in $4,799.04 in interest payments, which translates to an additional $179 in monthly expenses. To avoid these extra costs, finding an auto loan with the lowest possible interest rate is essential.

Car Insurance

If you've been in an accident and your vehicle is no longer in use, paying for it may seem like a waste of money. However, with GAP insurance, you can have peace of mind knowing that the remaining balance on your vehicle will be covered. The cost of insurance is influenced by various factors, including the value of your vehicle, the coverage you choose, and your driving history.

It's always wise to get multiple insurance quotes before purchasing a policy for your vehicle. This allows you to compare rates and make an informed decision that fits your budget. Take the time to reach out to reputable insurance companies and get the information you need to confidently protect your investment.

Fuel

Fuel prices are constantly changing due to market conditions, which can make it challenging to estimate your budget accurately.

The average American drives 15,000 miles every year, and the average cost of gasoline is 18 cents per mile; that means they spend approximately $225 per month or $2,700 per year.

It's always a good idea to hunt for the best gas prices in your area. Many apps can help you locate the cheapest gas stations nearby. However, be mindful of driving too far away just to save a few cents, as the cost of extra mileage may outweigh any savings you would gain.

Registration and Fees

Taxes, fees, and insurance rates can significantly impact your budget. To avoid any surprises, make sure to do your research and find out the registration expenses and specific fees in your state. Verifying these costs can be crucial in making the right decision.

Maintenance and Repairs

As a responsible vehicle owner, you know that maintaining your car's performance is essential to keep it running smoothly. According to Bankrate's research, many Americans spend between $370 to $786 annually on auto maintenance. We recommend budgeting $32 to $66 per month for vehicle maintenance.

Find a Car You Can Afford at Jenkins Acura

Visit the Jenkins Acura dealership in Ocala, FL, to start the car-buying experience. Our team is dedicated to guiding you through every step of the process and ensuring that you make a well-informed decision. We even make it easy for you to shop for a vehicle online, so trust us to provide you with the knowledge and confidence you need to drive home in the car of your dreams.