Buy new cars and these are hidden costs you need to know

Used Car

“Earlier this month, I bought a car for the first time. I found a 2007 Toyota RAV4 for $ 7,849. But now, I know, the actual cost of owning a car is high. far more than the list price.

Matt Jones, a former car salesman, warned me that there would be hidden costs. He said that the unforeseen cost is actually the biggest and absolute mistake for first-time buyers.

However, I was surprised at how quickly the cost actually increased. Here are the five fees that I have to deal with.

  1. Listed price and registration fee: 323 USD

When you buy a used car from a private seller, you must go to the DMV (government agency that manages the vehicle registration and issue a US driver’s license) to register your vehicle under. Your name. To do so, you will need to bring proof of insurance, license and payment form.

In total, I spent 322.89 USD at the DMV. Here are the fees: Registration fee: 36 USD, Certificate of ownership: 52 USD, Highway use tax (HUT): 142.5 USD, Property tax: 67.39 USD, Fee car: USD 20, Notary fee: USD 5.

  1. Car insurance: 60 USD per month

Living in New York City, where you don’t need a car, in the last five years, I’ve never had to pay attention to car insurance. But now, I have to pay a fee of 60 USD / month for this problem.

  1. Petrol: 90 USD a month

Again, this cost seems obvious. When gas prices go up rapidly, I spend about $ 45 to fill up the gas tank and I plan to do it twice a month, meaning I will spend nearly $ 100 a month on gasoline.

  1. Maintenance: Minimum of 310 USD per year

I had my first oil change, and I had to pay 70 USD. I will do this every four months, will increase by 210 USD during a year. I will also check my car once a year, the fee is about 100 USD. The total maintenance fee for the vehicle is 310 USD per year. In addition to these recurring expenses, other maintenance costs may arise such as tire durability, which can cost a few hundred dollars more.

  1. Parking: USD 64 per ticket, plus parking meter

Currently, I am parking on the street for free overnight, but there are times during the day that I pay a meter or an hour to park my car in the parking lot. The rate is not too large, but will increase over time.

Total: 2,497 USD

Adding up the one-time costs like registration fees and monthly expenses like insurance and gasoline, I will spend nearly $ 2,500 on my car this year – and that’s when I don’t have any parking violations. which car.