Financially, buying a car is not as simple as it seems. You don’t just drop into a dealership, buy a car and walk out. You have to be ready for additional expenses that come from buying the car. The most obvious ones are paying for fuel and maintenance of your car, but there are a few others you are overlooking.
Here’s what you need to know about additional costs when you purchase a vehicle.
Insurance
You can’t skip out on insurance when buying the car. On the whole, you have three types of insurance that you can purchase that gives you different coverage, and are of varying costs. The most basic one covers the person affected by an accident or damage you have caused, with the essential one covers both you and the victim, and the most advanced insurance can even cover your car in case of natural disasters.
Tax
Be ready to pay tax on the car you buy. This will increase the purchase cost of the car. Tax charged on a vehicle depends on various factors like where it was manufactured. On average, Alberta charges about 5% sales tax.
License & Registration Fee
You have to get the car registered in your name and acquire a plate number for it. For this you will have to get in touch with a licensed Registry Agents who will have it done. If you don’t know any Registry Agent, ask your dealership and they will put in touch with one.
Maintenance
If you want to keep your car running for a long period of time, you have to ensure it is regularly maintained. You have to spend on:
- Oil
- Coolant
- Brake Fluid
Additionally, your car will face wear and tear from time to time and need parts to be replaced. With such issues, whether your car is locally produced, or the parts have to be bought from outside the country, matters because of the cost difference and time it will take to fix your car.
Down Payment
Even if you take a car loan, you may still have to give a down payment to the dealership. However, depending on your financial situation and credit score, it can be negotiated.
Parking Costs
Even if you have a parking lot at home, be prepared to pay parking costs. Your car is not going to always be parked at home. When you take it out, you’ll have to shell out for the Parking Meter. If you don’t have parking space at home, you’ll have a high parking bill that will eat into your income.
Taking a loan from Insta Auto Loan will be able ease your financial burden, but not all of it. Be ready for additional expenses when you purchase your car.
