Owning a Used Car: How Much Can You Expect to Pay Each Month?

If you are tempted to cut corners on the purchase of your next used vehicle to save money, you may want to reconsider. Even though you can often find deals to save money up front, it usually comes back to bite you.

Simply put, getting a good deal on a used car spans beyond the purchase price. You also must consider the little things that accompany the monthly payment such as insurance, gas, maintenance and repairs. This may seem like a lot to afford, but it doesn’t necessarily mean you won’t be able to afford the used car of your dreams.

The costs of owning your ride is decreasing as time goes on. On average, the monthly operating and ownership costs associated with owning a sedan is $739.67 (or $8,876 per year), according to a recent report released by AAA. Operating costs include gas, maintenance and tires whereas ownership costs include full-coverage insurance, license, registration, taxes, depreciation and finance charges.

Here’s a detailed breakdown of their findings by vehicle type, based on a 15,000 annual mileage:

If you are blown away by these figures, don’t start worrying yet. Here are some things to consider when shopping that can help you save later on down the line:

Gas

Wouldn’t it be grand if all cars could run off of oxygen? Unfortunately, cars need gas, and gas is expensive. Even hybrids require gas to function. Bummer.

So, when you’re shopping, you’ll need to pay attention to the fuel economy ratings, both on the highway and in the city. Put this expense into your car budget, and see how often you can afford to fill your tank. Even though you can’t control gas prices, you can control how much you spend to fill up your tank each week. Continue reading…