A Guide to Your Expenses When Getting a New Car

While getting a new car often brings many happy feelings like joy and excitement, it can also bring negative feelings, like stress. This is mainly because of the added financial strain that a new car places on the owner. 

As you probably know, when you’re buying it, there are almost always more expenses than you planned on. First-time buyers often think that they need to have enough money for it, but they completely forget about the other expenses that need to be paid when buying a car. Keep reading to learn what your biggest expenses will be when you get a new car. 

A warranty 

Warranties are often confused with service plans – which we’ll discuss later – and while it’s true that the two have many similarities, they are quite different. 

A warranty covers you if something goes wrong with it during the warranty period. To put it in simple terms: it’s a contract that means the manufacturer has to replace or fix certain parts of it if they break during the warranty period. 

While a warranty is an optional expense, it’s a good idea to get one, since it will mean you might not be liable for damages during a certain period. There are many types of warranties out there, so have a look at the CarShield cost to see if it can work for you. 

Insurance

Of course, insurance is a very important thing in many aspects of your life, not just when it comes to your car. While many people think insurance is a waste of money, it’s an expense that is absolutely worth it.

You never know what will happen to your car, and having a good insurance provider will give you the peace of mind that comes from knowing your car will be covered if there’s ever an emergency. 

The car

Of course, your biggest and most important expense will be the car itself. There are a few ways to go about this. Some people will buy it entirely in cash, while others may only be able to pay it back in monthly installments. 

Those aren’t your only options, however. You can also pay a portion of it in cash as a deposit, and then pay the rest off over a couple of years. 

It’s important that you choose you can actually afford. For help with this, you may want to use a car cost calculator

A service plan

As mentioned, service plans often get confused with warranties. So, what’s the difference? We’ve already covered what a warranty does, so now let’s talk about service plans. 

A service plan means that you pay an extra fee when you buy the car, and in exchange, you get a contract that means you can get your car serviced when needed. Since car services do tend to be expensive, it’s not a bad idea to invest in a service plan – your future self will thank you. 

Even if you don’t opt for a service plan, you should still get your car serviced at regular intervals. You can use these tips to save some money when getting your car serviced.

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