Purchasing a new car is always a shock to the family budget. While many people remember to add the costs of a car note payment and insurance to their budget, most forget the additional costs that come with owning any vehicle.
To accurately add your new car into your budget, consider the costs of each of the following:
Car Note Payment
If you borrowed money to purchase your new car, then you will be required to make a monthly minimum payment on the loan. If you will be making just the minimum monthly payment, then that is the number to put into your budget.
If you will be sending additional money each month, to pay-off the loan more quickly, then you need to add that amount into your budget as well.
For ease of accounting, you might want to keep these amounts on separate lines. This will allow you to easily see what the fixed cost is, and what is the optional amount.
Car Insurance Payment
If you pay your car insurance each month, then that is the number you will put into your budget. If you pay your insurance once every six months, then you should take that amount and divide it by six. The resulting number is what you will put into your monthly budget. (for more information on car insurance, contact a company such as Butler & Messier Insurance)
Maintenance Costs
Vehicles of today are very complicated machines. All of that complication adds to your riding comfort, but it also causes cars to have many areas which require routine maintenance. Additionally, cars have emergency break-downs which can range from a few hundred dollars for a flat tire to thousands of dollars for engine failures.
When your car is new, you will have less mechanical problems, but it will still need to have the oil changed and other routine maintenance performed. You should set aside at least fifty dollars each month into a fund for car maintenance.
Gasoline
If you want to get very far in your new car, then you will have to feed it with gasoline. The easiest way to budget for gasoline costs is to perform a basic calculation.
Start by adding together the number of miles you will drive in a month for each of the following locations
Take the number of miles above and divide it by the number of miles per gallon that your car gets. (You can find this information in your car’s owner’s manual.) This calculation will give you the number of gallons of gasoline you will need to purchase.
Once you know how many gallons of gas you need, then you can multiply that number by the current cost of gasoline in your area. It is a good idea to pad this calculation a bit by rounding-up the price of gas about ten cents per gallon.
Conclusion
The secret for budgeting correctly for your new vehicle is to make sure that you include all of the various costs that are listed above. While it is easy to look at the cost of your car based solely on the note payment and insurance, the reality is that there are many other costs that come with car ownership. By budgeting for all of these added costs, you can successfully add realistic car expenses into your family’s budget.
To accurately add your new car into your budget, consider the costs of each of the following:
Car Note Payment
If you borrowed money to purchase your new car, then you will be required to make a monthly minimum payment on the loan. If you will be making just the minimum monthly payment, then that is the number to put into your budget.
If you will be sending additional money each month, to pay-off the loan more quickly, then you need to add that amount into your budget as well.
For ease of accounting, you might want to keep these amounts on separate lines. This will allow you to easily see what the fixed cost is, and what is the optional amount.
Car Insurance Payment
If you pay your car insurance each month, then that is the number you will put into your budget. If you pay your insurance once every six months, then you should take that amount and divide it by six. The resulting number is what you will put into your monthly budget. (for more information on car insurance, contact a company such as Butler & Messier Insurance)
Maintenance Costs
Vehicles of today are very complicated machines. All of that complication adds to your riding comfort, but it also causes cars to have many areas which require routine maintenance. Additionally, cars have emergency break-downs which can range from a few hundred dollars for a flat tire to thousands of dollars for engine failures.
When your car is new, you will have less mechanical problems, but it will still need to have the oil changed and other routine maintenance performed. You should set aside at least fifty dollars each month into a fund for car maintenance.
Gasoline
If you want to get very far in your new car, then you will have to feed it with gasoline. The easiest way to budget for gasoline costs is to perform a basic calculation.
Start by adding together the number of miles you will drive in a month for each of the following locations
- round-trip to school
- round-trip to work
- enjoyment use
- household needs use
- emergencies
Take the number of miles above and divide it by the number of miles per gallon that your car gets. (You can find this information in your car’s owner’s manual.) This calculation will give you the number of gallons of gasoline you will need to purchase.
Once you know how many gallons of gas you need, then you can multiply that number by the current cost of gasoline in your area. It is a good idea to pad this calculation a bit by rounding-up the price of gas about ten cents per gallon.
Conclusion
The secret for budgeting correctly for your new vehicle is to make sure that you include all of the various costs that are listed above. While it is easy to look at the cost of your car based solely on the note payment and insurance, the reality is that there are many other costs that come with car ownership. By budgeting for all of these added costs, you can successfully add realistic car expenses into your family’s budget.
No comments:
Post a Comment