//DRIVING A CAR COSTS MORE THAN YOU THINK
Buying a car is expensive. Even if you buy a used, economical car, you’re still looking at spending thousands of dollars. So here’s the big question: do you know how much it really costs to drive a car? In no particular order, here’s our list of “the big five” extra costs of driving:
1. Loan interest. When you get a loan, you must pay interest, which is the cost of borrowing money. If you see a car for $10,000, you can expect to pay anywhere from a few hundred dollars to well over a thousand dollars in interest. Our advice ... check out your Credit Union first for the lowest rate possible.
2. Car insurance. If you’re under 25, there’s a good chance that you’ll pay over a thousand dollars a year in insurance. The actual cost depends on factors like where you live, your age and the kind of car you drive.
3. Gas and motor oil. With gas prices at an all time high, this can make a big difference in whether or not you can even afford to drive a car. And don’t forget oil changes. Most experts recommend that you get your oil changed every 3,000 miles.
4. Repairs and maintenance. Whether it’s money to fix a flat tire or to buy new windshield wipers, you should always have money set aside to help pay for unexpected car expenses.
5. License and registration. Every year, you need to pay a fee to update your license tags. The costs vary on the age of your car, as well as the state that you live in.
We’re not pointing out all these expenses to discourage you from ever buying a car. Actually we hope you are able to buy the car of your dreams one day. But when you do, we just want you to be prepared for all the actual expenses related to driving. When you’re prepared, owning a car is much more fun.
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