How To Calculate Vehicle Cost of Ownership in Ocala, FL

How Much Does Owning a Car Really Cost?

If you're looking to buy a new vehicle, it's important to remember that the cost of ownership goes beyond just the monthly payments. There are several factors that can add up quickly, making it challenging to stay within your budget. At Jenkins Auto Mall, we're here to help. Our expert team can assist you in calculating the total cost of owning a vehicle, ensuring you make an informed decision that fits your financial needs.

Typical Car Ownership Expenses

When considering whether you can afford a car, it's essential to account for all associated costs. Understanding these expenses will equip you with the knowledge you need to make a confident decision. Here's what you should consider when purchasing a vehicle:

Monthly Car Payment: Many people focus solely on the monthly payment, which can be a mistake in the long run. According to Bankrate’s January 2024 report, the average monthly car payment is $726. However, you should also factor in financing costs along with the purchase price to save money over time. For example, a $30,000 car with a 6% interest rate over 60 months can result in $4,799.04 in interest payments, adding $179 to your monthly expenses. To avoid these extra costs, find an auto loan with the lowest possible interest rate.

Insurance: Car insurance is another crucial expense. If you've been in an accident and your vehicle is no longer in use, having GAP insurance can give you peace of mind by covering the remaining balance on your vehicle. The cost of insurance depends on various factors, including the vehicle's value, your chosen coverage, and your driving history. Always get multiple insurance quotes to compare rates and make an informed decision that fits your budget.

Fuel: Fuel prices fluctuate due to market conditions, making it challenging to estimate your budget accurately. The average American drives 15,000 miles annually, and with gasoline costing about 18 cents per mile, that translates to approximately $225 per month or $2,700 per year. Use apps to find the best gas prices in your area, but avoid driving too far to save a few cents, as the cost of extra mileage might outweigh the savings.

Registration and Fees: Taxes, fees, and insurance rates can significantly impact your budget. To avoid surprises, research the registration expenses and specific fees in your state. Verifying these costs is crucial for making the right financial decision.

Maintenance and Repairs: Maintaining your car is essential to keep it running smoothly. According to Bankrate, many Americans spend between $370 and $786 annually on auto maintenance. We recommend budgeting $32 to $66 per month for vehicle maintenance to ensure your car stays in top condition.

Find a Car You Can Afford at Jenkins Auto Mall

Visit Jenkins Auto Mall to start your car-buying experience. Our team is dedicated to guiding you through every step of the process and ensuring you make a well-informed decision. There are lots of reasons to shop with us, so come by the dealership in Ocala, FL or shop online. We’re ready to guide you to the car, truck, or SUV of your dreams!