Calculating the actual cost of owning a vehicle

If you are in the process of buying your next vehicle, you have probably calculated your budget many times over to make sure you purchase a car or truck that you can afford. That said, have you also taken into account the extra fees that you will have to pay that go beyond the simple monthly payment?

The fact is, these fees can sometimes add 50 % or more to the monthly payment of your vehicle, so you want to factor them into your calculations. Here are a few extra fees that you should plan for when buying your next vehicle.

Insurance and fuel

It’s always a good idea to contact your insurance company to get a quote for the vehicles you are thinking about buying. This will allow you to factor the cost of insurance into your calculations, but more importantly you will avoid any nasty surprises that may come if you check the cost of insurance after you have purchased your vehicle.

Fuel is also an important and recurring cost that you want to take into account. If you are buying the same type of vehicle as the one you currently own, the cost of fuel will probably be the same. But, if you are upgrading to a more powerful car, or buying your first truck or SUV, the difference may be significant.

Tires and maintenance

Tires and maintenance are costs we often forget, because they do not occur every month. Regardless, you want to plan ahead for the cost of maintenance and new winter and summer tires. Estimate how many times you will be replacing your tires, and divide that number by the number of months you plan to own your vehicle. Same for maintenance. You can get an idea of maintenance costs by talking with your dealership, or going on various owner forums.

Thank you to Kentville Nissan for their help with this article