What is involved in the cost of owning a car?
So, you think you know how much a car costs? Sure, the price you pay at the dealership is a big part of what it costs to own a car. But, unless you’re going to take your new car home and let it sit in a vault, there are plenty of other costs associated with owning a car. The first, and probably the most obvious, cost of owning a car is actually paying for the car. When you purchase a new car, you and the dealer agree on a price. If you pay cash for the car (something only about 11 percent of new car buyers do), then the price you and the dealer agree on is the price you pay. However, if you finance a car, you’ll end up paying the agreed-upon price, plus interest. Once you’ve either paid cash or secured a loan for the car, your expenses are just beginning. The next expense you have is car insurance. Car insurance is a key component of owning a car because it helps cover your expenses if you get into an accident. Car insurance rates vary depending on where you live, what kind of car you
