When buying a vehicle, one of the most important things to plan for and consider is your budget. It is difficult to choose the right vehicle when you don’t know exactly how much you can spend on it.
Planning the budget for the purchase of a vehicle is, therefore, a crucial step, but the majority of people are able to determine fairly quickly what they can afford on a monthly basis.
That said, the monthly payment isn’t the only consideration. There are other costs that come with owning a vehicle that must be taken into account. Here’s an overview.
The expense related to fuel is very important and it is recurrent. Even if you buy a hybrid vehicle or a very fuel-efficient vehicle, you still need to put gas in it. To calculate your monthly gasoline expenditure, evaluate the number of kilometres you travel monthly, divide that by 100 and then multiply the sum by the average consumption of your vehicle (fairly easy data to find online).
Then multiply the result by the average price of gasoline in your area. Often, the result will surprise you and exceed $100 a month. The expense is not negligible.
For some, insurance is minimal. For others, it will exceed $100 a month like the cost of fuel. Therefore, make sure to take it into account. You can estimate the cost of insurance by contacting different companies before making a purchase to find out how much you will need to spend per month on your car insurance.
Even new vehicles require maintenance services. You should plan to set aside an amount every month to avoid being surprised if unexpected repairs are needed. Expect between $50 and $100 per month for future maintenance and repairs.
Yes, it can be difficult to predict the expenses related to a vehicle. As a rule of thumb, add 60% of your monthly payment to the latter when you plan your budget.
For more information and advice on budget planning, contact us or visit us at Belvédère Occasion in Saint-Jérôme.