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What are the Used Vehicle Ownership Costs?

Buying a car is an exciting time in one’s life, but there’s a lot to keep in mind going forward across your ownership experience to keep those good times going. Whether you’ve been saving up for your purchase, or have it in your budget for monthly financing, the cost of a vehicle can take up a large portion of your expenses. Beyond the initial purchase, there are many additional costs that come with owning a car that you need to be familiar with before buying, so you can continually afford your vehicle well within your means. Follow along with our team here at Davey Auto Sales as we outline some of the top areas that demand extra cost over your time with your vehicle.

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Financing

Most people finance their vehicle, which means there’s no lump sum purchase of the vehicle like traditional products, you’ll be paying a specific amount each month on your loan. This price is dependent on your credit score, and varies depending on the person’s history and the vehicle they have purchased. This is, by far, the biggest cost for your vehicle, and something you will have to pay each month on a large scale, in comparison to areas like registration and repair, which are not required each month.

Gas

Filling up your vehicle will be the second biggest expense for your vehicle, you need it to keep you going, after all. Fuel prices, as we all know, can vary greatly over the year and month-to-month, and can differ depending on where you live. In a time of extremely increased gas prices, you’ll be at the mercy of the pumps, with you having to fill up at a much higher price for fuel that you need to keep your vehicle running, so planning as best as you can for large jumps is advisable. Your driving habits, schedule and vehicle affect your fuel consumption, so if you’re particularly worried about this expense, you may want to consider hybrid options.

Person filling up vehicle with gas

Registration

It would be great if you could just get in your vehicle and go, but it’s not that simple, there’s some paperwork that needs to be considered. You need to get your vehicle registered as well as purchase a license plate and sticker. Those all come with fees, and your registration will be something you’ll have to renew every 1-2 years. While not a monthly cost like your financing and fuel payments, registration does come with its own fees.

Insurance

You need insurance protection to be able to legally drive here in Canada, in order to help protect yourself in the aftermath of an accident. Vehicle insurance is something that is most commonly paid on an annual basis. Its price is determined through a number of actors including age, location, your car, driving record, type of coverage and more. Premiums will vary across different insurance companies, so make sure to shop around to find the best one for you. 

Close-up of person working on a wheel

Maintenance & Repair

An extended warranty on your used vehicle is a great idea to get to help cover your vehicle in the event of needed maintenance or repair (such as at Davey Auto Sales). For those who don’t have a warranty currently covering their vehicle, you’ll need to pay for any maintenance or repair needed. Something like scheduled maintenance can be planned ahead and known that you’ll have to pay for such things like oil changes and tire changeovers, but repairs can spring out of nowhere and surprise you with a bill that is necessary for the continued operation of your car. A good idea is to set aside some money (a couple thousand dollars, is recommended) toward unexpected repairs, so you’re prepared for such an event.

Buy a Used Vehicle at Davey Auto Sales

Our team here at Davey Auto Sales will walk you through the entire vehicle purchasing and ownership experience, answering any questions you may have. We’ll work to get you the best financing terms on a vehicle that fits your needs. You can buy with peace of mind at Davey Auto Sales knowing you’re buying a high-quality used vehicle that’s been expertly taken care of and inspected to the highest degree. For any questions, or to start the buying process today, please don’t hesitate to reach out to us.

Mar 25th, 2022