If you don’t already have one, the truth is that you’ve always wanted to own a car. But are you ready for the expenses that come with it? It is said that a vehicle starts depreciating the second you buy it, and you best believe it. That drive from the showroom to your residence initiates the tear and wear, does it not?
For most people, however, the convenience of driving yourself around beats everything else that would be considered a disadvantage. All the same, a recent AAA study shows that owning a car in the United States is increasingly becoming a luxury that most citizens can’t afford.
$40,000 On a New Machine
On average, you’ll have to fork out almost $40,000 for a brand-new machine. Maintenance will cost you about $9,282 annually, which is around $773.50 per month. Considering that the average American man takes home a salary of $52,208 and the woman $41,912 per year, do you now see why buying a new car may be taxing?
Car ownership is becoming more expensive by the day, and among the reasons that have been brought forward to explain why this is so, is Americans’ preference of SUVs and large trucks to the smaller and, of course, more affordable vehicles.
In every traffic snarl-up, don’t SUVs make the bulk of the vehicles on the road? The thing that most Americans choose to ignore is the fact that these cars have high maintenance costs, and paying for their insurance doesn’t come cheap either.
You do know that expenses vary from vehicle to vehicle, right? It just so happens that pickups top the list of the most expensive cars to maintain, with costs going as high as $10,839 per year. If you own a sedan, the cost will be cheaper than the pickup’s but $7,114 annually is still pricey.
If we’re being honest, a significant percentage of the population buy cars using loans. The costs incurred while repaying these funds make the car even more expensive than it originally was, thanks to the interest rate charged on the loan. On average, you’ll have to pay an interest of $920 every month.
Remember how we said that cars start depreciating in value immediately you purchase them? Apparently, depreciation accounts for 36% of the expenses you incur to maintain your car. That’s an average of approximately $3,334 every year.
Used Cars
Are you still thinking about a brand-new vehicle? If your pockets are deep enough, well and good. If not, you may be interested in knowing that used cars go for an average of $20,000. What’s more, you can find one in an almost perfect condition, and with a few tweaks here and there, your machine will be good as new.
Truth be told, those few tweaks can’t cost you a whole $20,000 – they won’t even come close. And who isn’t always looking to save a few bucks? You can then direct the extra funds elsewhere, say maybe an emergency fund.
And as a car owner, you really do need one. Machines, even motor vehicles, can pull up unexpected surprises and if your emergency account is well stocked, you may not even feel the pinch.
