What To Include In Your Automobile Budget

Pre-owned vehicles are an attractive option for those who want to maximize their auto investment. Unlike a new vehicle that will eventually depreciate, a pre-owned vehicle is already depreciated. This means that you get more for your money!

Nevertheless, when you prepare your budget for the purchase of your used vehicle, you should take into account several expenses that are sometimes forgotten, but that still have an impact on your overall budget.

Thus, to avoid surprises and to ensure you buy a vehicle that meets your expectations at every level, take a look at the following expenses you should include in your budget.

• Insurance
• Gas
• Maintenance
• Registrations

The most significant expenses are insurance, gas, maintenance and registrations. These expenses can easily amount to your half of monthly expenses. Gas, for example, can easily cost more than $100 a month, sometimes more if you use your vehicle often. Maintenance adds at least $500 a year if there are no unplanned repairs. Registration adds between $100 and $300 a year while insurance adds between $300 and more than $1,000. You also have to think about winter and summer tires, parking (not insignificant if you live in Montreal, for example) and other related expenses such as windshield wiper fluid, new accessories and even speeding and parking tickets.

In the end, if you have a vehicle that costs $300 a month, you should expect to pay between $150 and $175 a month for related expenses to have complete peace of mind.