Cars are one of the biggest expenses in modern day life. Whether you’re driving a Corolla or a Rolls Royce, your car’s expenses can be divided into 4 categories: cost of the car itself, cost of fuel per mile driven, cost of parts and repairs, and cost of insurance.
Cost of vehicle
The cheapest new car available in the 2020 model is the Chevrolet Spark ($14,095). Some new Cadillacs sell for as much $90,000 and some of the most expensive cars like the Bugatti can sell for as much as 3 million!
So it’s important to decide whether you want a new or preowned car before you start shopping. If you buy from private sellers you can often find deals well under the Kelly Blue Book value of the car and if you get lucky you may even find a once in a lifetime deal! The downside of buying used is that you can’t ever be sure of the history of the car, although services like CarFax can help.
With a new car you get a warranty for a certain amount of miles or years (whichever you reach first) which can save you a lot of money because they usually including free maintenance and repairs. However a new vehicle can leave you with a hefty bill of between $200-400 on average on top of your insurance.
Cost of Gas (Miles Per Gallon)
Generally, the smaller the engine, the more fuel efficient the car. There are exceptions to this rule as some small engines are built for racing and the engine is far from the only factor in determining MPG. Some cars use hybrid engines which use electricity to replace some of the energy usually created by gasoline to power the engine. Some cars are 100% electric like Teslas but the you are still charged for the electricity which can be around the same price of gas at some charging stations.
Trucks and SUVs typically burn a lot more gas than smaller cars. If you want to find the most fuel efficient car, make sure to include hybrids, electric cars, and small vehicles in your search.
Cost of Parts and Repairs
what is the most economical car to drive
The cost of maintaining a car is usually relative to the sticker price, but its worth researching some part prices before investing in a vehicle. A lot of foreign retailers have very expensive replacement parts since they have to be imported, whereas some like Honda and Toyota have extremely cheap parts (cheaper than American parts in most cases).
Many newer cars are fully integrated with complex computer systems and require a specific type of mechanic to diagnose and fix any issues. Many older cars have simple systems that can be repaired by most auto shops. They also tend to be spacious under the hood almost as if they were designed to be maintained by the owner.
Cost of Insurance
Insurance prices can vary wildly depending on your age, gender, driving record, state, county, type of car and yes, even the color of your car! There are many great services that work with a network of insurance agencies to get you a discounted price lower than you can you can get with the insurance providers directly. I strongly recommend looking into Good2Go insurance and call them back every 6 months to receive an updated lowest price.
The best way to ensure you get the lowest insurance rate possible is to always drive safely and err on the modest side when selecting your vehicle. A cherry red 2020 Corvette will cost you a whole lot more than a 1995 Corolla.
Be sure to consider all these factors when choosing your next vehicle. While the Chevy Spark is the cheapest sticker price, it may not be the cheapest to maintain. Do your research with insurance providers and networks, always drive safe and try to find something with a great MPG rating. Remember these expenses and you’ll be on the road to a cost efficient car in no time! For more tips about buying cars visit youramazingcar.com.
