How much should I cost per month if I buy a car?
November 6, 2009 9:14pm CST
Hi, how much are you costing monthly for a car? I want to buy a car, but I don't know if I have enough money for pay it every month. For example, how much should I pay for the insurance and gas?
• United States
7 Nov 09
How much it's going to cost you is going to depend on a number of things. Are you going to buy the car outright, or are you going to finance it? If you buy it outright, you'll have a much larger expense upfront, but you won't have to make monthly payments on the car. If you finance, what you pay monthly is going to be determined by your interest rate and the total amount you're paying for the car. It will also determine what sort of insurance coverage you'll need--if you buy outright, your state's minimum is all you'll need, but if you finance, you'll likely need full coverage. What model and year of car are you hoping to get? That will help determine how much you will pay for insurance, as rates are based on the make, model, and age of the vehicle you're insuring as well as your age and driving record. Newer cars cost more to insure, and they will be more expensive to register with the DMV each year, too. How much you pay for gas is going to depend on how big the vehicle's tank is, how many miles it gets per gallon, and how much driving you do. As a general idea, I just filled my Corolla's 11-gallon tank for $26, while my husband's truck takes about $40 to fill a 16-gallon tank. They both get roughly 400 miles per tank. When you find a car you like, you can contact a local insurance agent and request a quote. They can give you an idea of what you'll be paying per month. Don't be afraid to shop around for the best insurance rates you can get, either. I was with Farmers since I bought my first car in 2004, but I just switched to Geico because they're charging me almost 50% less than I was paying for significantly better coverage. Some websites you might want to check out are the Kelley Blue Book site, which lists vehicle values (http://www.kbb.com) and AOL or Yahoo Autos, which will give you specs for lots of different models. Once you've got an idea of what sort of vehicle will suit you best, you can start figuring out how much it will cost you per month.
• United States
7 Nov 09
Gas money really depends on how much you plan on driving. Insurance can range anywhere from $50-$60 for super basic insurance(unless you live in a cityish area then it will probably be much higher) without much coverage to as much as $150+. The younger you are the more likely you'll have a higher rate. The older you are the lower it will cost you, and if you have no accidents on your record and no bad driving records it shouldn't be too shabby as long as you aren't driving a sports car. I would say in general you might want to make sure to have at least $130 to spare a month for insurance but possibly more, and at least $130 a month to be on a more then safe side for gas. There is no guarantee you'll need that much as these are kind of overestimations. If you work from home you can save a LOT on gas money obviously so it wouldn't be too costly. Keep in mind on top of that you'll need even more money to save just in case it breaks down or if a major part of the car breaks that happens to be a costly one. $2000ish might be a good "safe" amount unless you buy a really cheap car and if you do then expect to put a LOT of money into it. Hope this helps somewhat. I could probably help you to make at least $200-$300 a month online which would definitely guarantee enough money to cover most of your insurance, as well as gas money.