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Costs to Consider When Buying a Car

There are several costs to consider when buying a car. If you are buying a car in Barbados, you should take note of the additional costs.

I have never owned a car. Part of the reason is that I can not afford one at this time, is because of other commitments. Added to that is the fear of all the costs to consider when buying a car. I have heard about all the “little” things that seem to pop up after you’ve signed on the dotted line.

Some of the costs to consider and include in your budget are:

  • Cost
  • Fuel (Gasoline/ Diesel)
  • Insurance
  • Servicing
  • Maintenance (Part and Repairs)
  • Taxes

Costs to Consider When Buying a Car

1. Cost – How much the car costs is one thing, but remember that if you get a loan to purchase the car, the “cost” will be a lot higher due to interest. Pay attention to what your monthly payments might be and how they fit into your spending.

2. Fuel (gasoline/ diesel) – Depending on the type of vehicle that you get, your fuel bill could be pretty high. In the USA, there are different grades of gasoline (e.g. basic, premium), which could increase your monthly outlay.

3. Insurance – You have to pay insurance for your car. There are no ifs, ands or buts. But, depending on your age and driving record, you could qualify for discounts. Some insurance companies offer bundling packages which combine the coverage for various items (e.g. home, home contents, boats etc.).

4. Servicing – Your car should be serviced regularly to keep it in good working condition. Frequent servicing allows you to spot any problems with your car. Most dealerships and garages send out reminders to let you know when your next car service is due.

5. Maintenance (parts and repairs) – Tires, oil, coolant and brakes are few of the items that your car might need over its working life. These are all normal with the wear and tear of your vehicle and should be kept in check to ensure that your car remains functional and safe.

6. Taxes – The government requires that you pay yearly taxes on your car. In Barbados there is a road tax which is mandatory for all vehicle owners.

If you notice, these costs that I mentioned are absolute must-haves to keep your car working at its best. It would not be wise to skimp on these costs or you could end up spending more money than you bargained for.