How To Budget For A New Car
If you are ready to purchase a new car, you are probably pretty excited.
During your excitement however, it is important that you take the time to figure out the total cost for the car. This total cost not only includes the price of the car, but also takes into account the fees, dealer costs, interest payments, and more.
Purchase Price Plus Extras
You may have chosen your new car for the price tag, but you may have been attracted to the extras as well. An automatic transmission or the color you want may end up costing you more than the purchase price. Even some standard features actually cost extra. Often the price offered on the commercial is the lowest possible price, but this model usually has the weaker engine and less safety features. If you want these things, be prepared to pay more.
Dealer Delivery Costs And Stamp Duty Costs
On top of your advertised price and extras, your new car will come with other costs too. A dealer delivery cost covers what the dealer had to pay to get and keep the car until they give it to you. These costs will vary depending on the dealer. You will also have to pay the government of Australia a stamp duty for your new car. This cost will vary depending on the cost of the car and region of Australia that you live in.
Costs To Use The Car
Your payments don’t end once you drive the car off of the dealer’s lot. There are also costs associated with owning a car that you should be aware of. These costs can include paying for the car’s registration, the fuel, long term maintenance and service plans, and roadside assistance. Most cars will end up costing their owners more than $10,000 in regular upkeep and fuel. Any accident or damage to the car may also add to your costs, even little things like windshield wipers cost money. You will also have to figure on paying insurance for the car as well. Your current insurance may also need to be upgraded to a more expensive level if the car you have just purchased is worth more than your old car.
Unless you paid for your new car out of pocket and in whole, then you should probably be ready to pay the costs of financing your purchase as well. Interest rates will add to your yearly maintenance costs over the years. This is one bill that you should aways be ready to pay because interest rates and penalties can really add up. Understanding that your new car will actually end up costing considerably more than the ticket price will help you to create a detailed and well conceived budget that will prevent you from going into debt over the purchase of your new car.
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