Things You'll Need:
- Internet access
- Telephone
- Paper
- Pen
- Calculator
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Step 1
If you are thinking about buying a new car, or a used car that is new to you, consider all costs involved before selecting one. Consider the costs that occur not only with the car payment, but the on-going payments for insurance, gas, maintenance, parking, tolls, etc.
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Step 2
Narrow your choices down to a few cars. Contact an insurance broker to determine how much each one would cost to insure.
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Step 3
Determine how much you would drive each week or month. Determine how many gallons of gas you would have to buy to drive that amount. For example, if you think you would drive 1000 miles a month, determine how much gas you would need to buy for each car model you are considering. If you purchased a car that got 20 miles per gallon, you would need to purchase 50 gallons of gas a month. If the car got 30 mpg, you would need to purchase 33 gallons. Figure the cost of gallons of gas at various prices to determine how much it would cost for gas.
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Step 4
How often does the car require oil changes? Every 5000 miles, every 10,000 miles? Figure out how much you would spend on oil changes. Does the car require special tires? What is the average life of the tires and how much do replacement tires cost? How often are tune-ups required? How often do the belts need to be changed?
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Step 5
Are there tolls involved on your driving route? How much do the tolls add up to per week, month, year? How much is parking? Can you pay by the day or do you need to pay for a month in advance?
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Step 6
Add together your estimated car payment, insurance, gas, maintenance, parking, tolls, etc. You should be able to determine both a yearly and monthly cost. This is the true cost of car ownership. Based on this amount, you can now make an informed decision about how much you can afford to pay for a car payment.
