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How much was the last car you bought? Ask anyone that question and the chances are they will respond by telling you the price they agreed at the auto dealers. But the reality is a little different – your car or vehicle is costing you a lot more than you think.
In this guide, we’re going to take a look at some of the hidden costs of driving that almost everyone will experience at some point as a car owner. The next time you think you have snared a fantastic deal at your local car dealership, make sure you have accounted for some of the following expenses, to ensure you truly understand the real costs.
Accidents happen, of course, and when they occur in a car, the results can be fatal. 1.3 million people die every year from auto accidents, and between 20-50 million suffer injuries around the globe. You will need to consult a personal injury attorney to ensure you get compensated for the award you deserve, or to defend yourself against an insurance claim from someone else.
Otherwise, your bank account can also take a serious hit. There will be medical bills to pay, extra insurance premiums, and of course, the cost of repairing or replacing your vehicle.
Even if you aren’t accident prone in your car, you can still expect to pay a significant amount in insurance. The average American driver pays $1,029 every year to insure their vehicle – and that’s only if they have a clean driving record and are recognized as a low risk.
Let’s say you buy a car for $5,000 and intend to drive it for the next five years. Add on the insurance expense and you have more than doubled the cost of the vehicle. So, before buying a new car, always get some quotes to find out how much your premiums will be – failure to do so could result in an eye-watering expense.
Depreciation starts happening as soon as you get the keys to your new car. According to the AAA, the average rate of depreciation costs American drivers somewhere in the region of $3,571, every single year. Every vehicle has different depreciation rates, so it’s vital to do some research before you buy, as it may work out better financially to go for a used model instead.
Not many people consider the cost of fuel when they buy a new car. Sure, they might glance at the mpg on offer and choose a sensible option over a gas-guzzler. But the average person certainly doesn’t take into account the amount of money they will spend every year, simply on feeding their new car with the juice it needs to get from A to B. Whether they should or not is debatable, as the average spend of $8,469 every year is enough to put you off driving altogether.
How much do you spend every year on maintaining, fueling, and insuring your car? Why not share your thoughts in the comments section below?