Welcome to our video called “What Are the Total Monthly Expenses As A Car Owner?” Having a car is convenient and gives us the freedom to travel, but it also means we have to spend money on various things. In this video, we’ll talk about the important parts of being a car owner and explain all the monthly expenses you’ll have. This includes obvious things like buying fuel, paying for insurance, and covering the car loan.
We’ll also look at other things that people might not think about, like the money needed for regular maintenance, repairs, and how the car’s value goes down over time. Whether you’re thinking about getting a car or already have one, this video will give you a good idea of how much money you’ll need each month. We’ll help you understand the real cost of owning a car and give you tips on managing your money wisely. Let’s get started and find out what it really takes to be a car owner!
What Does “Loan to Value” Mean? Transcription:
“When obtaining a car loan, it’s crucial to keep in mind that your monthly car payment is not the only expense you should consider. This is especially important for individuals with poor credit, as understanding the total monthly costs associated with car ownership becomes even more vital. Let’s explore some key examples. First, Car insurance is a significant expense that many people tend to overlook when budgeting. If you’re financing the vehicle, the lender will typically require you to have full coverage insurance. Also, consider Fuel Economy. Opting for a smaller, more fuel-efficient vehicle can help you save money on fuel costs, ultimately reducing your overall monthly expenses. Finally, let’s talk about Maintenance Costs: When purchasing a new car, it’s essential to check the length of the new car warranty. If the warranty doesn’t cover the entire duration of your finance contract, you might consider extending it. For used cars, it’s advisable to think about an extended warranty unless you can set aside funds each month for unforeseen repair bills. Always remember that insurance, fuel, and maintenance expenses should all be factored into your monthly vehicle budget, alongside your car payment. By accounting for these additional costs, you’ll have a more accurate understanding of the overall financial commitment involved in car ownership.”