Ask yourself these questions – and answer them honestly! – when you first buy a car:
- Can I cover the total cost of the car, or afford a down payment of $1,000 – $1,500 along with loan payments every month?
- Can I get a loan?
- Can I afford the other immediate costs associated with buying a car, including taxes and registration?
- Can I afford to run a car, including insurance, regular maintenance, parking, and gasoline? A car with a 12 gallon gas tank costs approximately $36 to fill if gas is $3.00 a gallon. If you fill your gas tank once a week, you’re looking at paying over $1,800 a year in gas. That’s a significant budget expense! Insurance can be a big ticket item too. Many new drivers/car owners pay over $100 a month for insurance.