Expenses to Consider When Buying a Used Vehicle

Used cars are a very attractive option for those who wish to maximize their investment. Unlike a new vehicle that is sure to depreciate when you leave the dealership, a used car is already depreciated. Ultimately, that means we get more for our money!

Nevertheless, when we prepare our budget for the purchase of our used car, we must consider several expenses that we can sometimes forget, but which will still have an impact on our overall budget.

So, to avoid surprises and make sure we buy a vehicle that doesn't become a burden on our bank account, here are some additional expenses that should be included in our budget.

Insurance and fuel

Insurance comes before fuel in the title, but in your budget, gasoline will be the biggest expense in addition to your monthly payment for the vehicle. You can estimate your gas mileage by noting its consumption per 100 kilometres and dividing the number of kilometres driven per month on average by 100. Then multiply this number by the displayed fuel consumption rating and multiply the result by 1, $ 25.

For example, if the car you buy consumes an average of 8 litres per 100 kilometres and you drive 1,500 kilometres per month, your fuel costs will be around $ 150 if gasoline is $ 1.25.

When it comes to insurance, the key is to contact as many companies as possible to get the lowest rate with the best protection. The monthly amount should then be added to your budget.

Maintenance and registration

You will only pay for the registrations once in the year, but you still need to plan for the expense, which is usually over $ 100. Let's say it's $ 120, which adds $ 10 per month to your budget that needs to be factored in.

Maintenance, meanwhile, can add more. Typically you need around $ 500 for annual maintenance, or around $ 45 per month if you want to be prepared. Add those expenses to gasoline and insurance, and suddenly you've got about $ 300 more a month.
Obviously, this number will vary from person to person and from vehicle to vehicle. Insurance depends on many factors, as do maintenance and registration costs. It is also necessary to provide the tires.

In short, buying a used car is usually a good deal when it is in good condition, but you still have to plan for additional expenses. Our advisors at Montreal West Motors can help you! Contact us today!