Budget for more than the payment: how insurance, fuel, maintenance, tires, registration, and taxes add to the cost of owning a used car, and how to compare vehicles on total monthly cost.
Look Past the Monthly Payment
The price and the monthly payment are only part of what a vehicle costs. Insurance, fuel, registration, maintenance, and tires all add up, and they can differ a lot between two vehicles with the same sticker price.
Estimating these costs before you choose a vehicle helps you pick one that fits comfortably in your budget for as long as you own it.
- PaymentYour monthly loan payment, if you finance.
- InsuranceVaries by vehicle, driver, and coverage level.
- FuelBased on your daily miles and the vehicle's fuel economy.
- Maintenance and tiresSet a little aside every month.
- Registration and feesPaid when you title the vehicle and at each renewal.
Get an Insurance Quote Before You Commit
Insurance rates depend on the vehicle's year, make, model, and trim, as well as your driving record and the coverage you choose. Two similar vehicles can carry noticeably different premiums.
Once you have a shortlist, send the vehicle identification numbers (VINs) to your insurance agent for quotes. If you finance, your lender will usually require full coverage, so ask for that quote too.
Estimate Your Fuel Costs
Multiply the miles you drive in a typical month by local fuel prices, then divide by the vehicle's combined miles per gallon. Run the numbers for each vehicle you are considering.
Long commutes and regular highway trips make fuel economy matter more. A few miles per gallon of difference can add up to hundreds of dollars over a year.
Plan for Routine Maintenance
Every vehicle needs oil changes, filters, brakes, and fluids on a regular schedule. The owner's manual lists what is due and when, and following it helps prevent larger repairs later.
Ask what maintenance was recently completed on the vehicle you are buying, and note what is coming due soon so it is part of your budget from day one.
- Find the maintenance scheduleIt is in the owner's manual or the manufacturer's website.
- Check tire tread and ageA set of tires is one of the larger routine costs.
- Keep a small repair fundEven well-kept vehicles need the occasional unplanned part.
Registration, Title, and Taxes
When you buy a vehicle you will pay to title and register it, and taxes may apply to the purchase. Registration also renews on a regular schedule.
Amounts depend on where you live and the vehicle itself, so check with your state's motor vehicle office for current figures. Ask our team which fees are included in your purchase paperwork.
Put It All Together
Add your estimated payment, insurance, fuel, and a monthly maintenance set-aside to get a realistic monthly cost. Compare that total, not just the price, between the vehicles on your shortlist.
Our team at OpenBook Auto in Farmington is happy to help you compare vehicles and payment options so the one you choose fits your budget well beyond the day you drive it home.