Thursday, February 2, 2023

How Much Does It Cost To Buy A Car

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Find The Right Vehicle For You

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Once youve established how much you can spend on a used car, its time to find the right one for you, or at least a list of several candidates. There are hundreds of different vehicles out there, and the pool of contenders only grows when you consider models over a range of years. This may seem daunting, but the good news is that with such a variety, there is a vehicle thats right for you, whether its a small SUV, large pickup truck, midsize sedan or a sporty convertible .

If youre reading this, you already know that most of the browsing and research of your next vehicle can be done online. KBB.com has extensive and deep information on every major make and model of vehicle. From expert and unbiased reviews from our editors to finding the horsepower and length of the car , all the information you need is at your fingertips. Its also helpful to read consumer reviews of the vehicle you are interested in. Those can also be found here at Kelley Blue Book.

As with any vehicle purchase, consider not just your present needs but your future ones, too. If youre planning to grow your family, now is probably not the time for that 2-seat sports car. And if youre planning on a third child, wed recommend a 3-row SUV or minivan over a smaller 2-row SUV.

The Average New Car Price Is Unbelievably High

Updated: by Financial Samurai

If you were to guess what the average new car price is nowadays, what would you guess? I guessed $23,000, since my Honda Fit is sweet for an economy car and only costs $19,600 new. Given Im frugal, leaving a 20% upside pricing buffer seemed logical. Too bad I was way off!

According to the valuation analysts at Kelley Blue Book reported the estimated average transaction price for a light vehicle in the United States was $37,876 in 2020. New-vehicle prices increased $975 from February 2019, while falling $126 from last month. Are you kidding me? Back in 2020, the average new car price was almost $38,000?

It gets worse. In 2021, Edmunds.com reported that the average new car price is $39,950. Thats nut! The average new car price has risen partially due to production shutdowns and supply chain issues during the global pandemic.

I guess we must all be quite wealthy because I dont know many people with a median household income of $68,000 who can afford such an average new car price.

Whats also surprising is that the average used car price has skyrocketed as well. Due to the pandemic, more people are buying used cars and taking less public transportation.

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Money Out The Tail Pipe

So there you have it. The super rich and the middle class who dont read Financial Samurai are spending like theres no tomorrow. The super rich dont care about rising interest rates. They pay in cash or lease vehicles as a business expense.

The middle class dont care if theyre spending a lot for a new car because they dont know any better. Eventually, the middle class will get crushed again, but for now, let the good times roll!

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Audi A8 L Security $750000

The Audi A8 L Security is another great bulletproof cat that comes with a stylish and appealing exterior. The Audi A8 doesnt just keep you safe from bullets, it also fights fires with hidden nozzles under the hood, it’s got run-flat tires supplies oxygen to the cabin in case of a chemical attack. The car runs at 155 MPH and catching it would cost you $750,000

Tesla Model 3 Performance: $56990

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Reaching its third year in production, the Tesla Model 3 Performance still excites. With a sub-$60,000 tag, the Model 3 Performance is one of the overall best performing vehicles for the price. Zero to sixty takes just 3.1 seconds, and it can achieve a top speed of 162 mph. As these performance figures are impressive for any car, the Model 3 Performance is a five-seater sedan with a 315-mile range.

  • Range: 315 miles

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Dartz Black Shark $250000

This war built SUV was a great blend of battlefield efficiency and SUV luxury. This bulletproof car isnt for those with lean pockets because Dartz had the Black Shark fitted with an engine that yields 1,500 HP, a sniper prevention roof, an automated drivers assist, a Kevlar-titanium body, a signal jammer, an explosive detection system and several features that would make you feel safer than youve ever felt in an SUV

Gas Costs More On The West Coast

When we wrote this article, the average cost for a gallon of gas in California was $3.39. While this might not seem too bad to anyone who remembers 2008, its currently the highest in the country, and it’s almost exactly a dollar higher than the national average of $2.40.

Washington and Oregon also had some of the highest fuel costs in the country with average gas prices set at $2.82 and $2.69, respectively.

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Fees Added By The Dealership

You know those really annoying booking fees that get addedto your cart when youre buying tickets for show and sports events when bookingonline? Well, you can experience something similar when youre buying avehicle. These add-on fees come in many guises and for many claimed reasons,but I always consider them to be unjustified.

Like any business, car dealers have costs associated with operating, but should the customer be asked to cover them? Dealers may charge fees for things like preparing a car for delivery, having the vehicle you want transported to the dealership, the paperwork associated with the sale, and anything else they can think up.

Ask yourself this question if a restaurant you go in for ameal has just had to replace a broken deep-fryer or some other piece ofequipment, would you be happy to pay an additional fee on top of your bill tohelp cover that cost to the owner? I think Im pretty confident your answerwould be no, so why should you pay a fee for the dealership to prepare a carfor sale.

All operating costs for a dealership should be paid for by profits, so adding fees on top is just a way of getting extra profit without raising the asking price of the vehicle. If youre a confident enough negotiator you should refuse to pay these fees, but if youre not, at least youll now be aware of what youre really paying for. Please remember, Im not talking here about the destination charge when buying a new vehicle.

The Look Over And Test Drive

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If you already obtained a vehicle identification number for the car, you could run a report on the car’s history at websites such as Carfax, but if this is not possible, use the following list to ask questions. It is best if you can bring a family member or friend who knows about cars to help you with these questions.

  • If it’s a private seller, ask them why they are selling the car.

  • Ask them how long they’ve owned the car and was there a previous owner.

  • Take a good look at the exterior and ask the seller if the car has been in any accidents.

  • Open the hood and inspect the engine are and ask if they had any mechanical work done on the car in the past six months.

  • Next, ask them how often they have the oil changed and tires rotated.

  • Ask them if they installed any after-market extras.

  • Now look at the inside and check the mileage.

  • Look over the interior for damage like rips in the seats or inside panels.

  • Check to see if all the lights are working inside and out.

  • Try the radio and any CD players or other media players.

  • Turn on the air conditioning. Ask the seller the last time the air conditioning was serviced.

  • Ask them if any recalls need to be fixed. You can check this before you see the car by looking at the United States Department of Transportation website.

  • You may want to calculate the miles driven per year to get an idea of how much wear and tear the car has undergone.

  • Try the heater, wipers, horn, emergency lights, and anything else on the dashboard panel.

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What Does It Cost To Insure An Electric Vehicle

According to Self.inc, Americans with an EV pay an average of $1,674 for car insurance annually, about $450 more than do drivers of gas-only cars, although much of this discrepancy is due to the higher average cost of EVs. Michigan is the most expensive state in which to insure an EV, coming in at $3,128 annually. That said, Michigan is also the most expensive state in which to insure a gas-powered vehicle, at an average of $2,032 per year. Conversely, North Carolina is the cheapest state in which to insure an EV, at an average of $1,038 annually its also the most economical place to insure a gas-powered vehicle, at an average of $764 annually.

How To Minimize Your Vehicle Costs

Along with doing your homework before signing a contract, there are many day-to-day things you can do to minimize your vehicle costs after the car is yours:

  • Dont drive too fast: Speeding, rapid acceleration and sudden braking all lower your cars gas mileage. Driving the speed limit or slightly below will help you save money at the gas pump.
  • Pick a reliable mechanic: Shop around with a few mechanics and look at online reviews before choosing one. Having a relationship with a trustworthy mechanic will ensure fair costs.
  • Take a defensive driving course: Many insurance companies offer discounts to drivers who successfully complete online defensive driving courses.
  • Dont overdo the air conditioning: Using your vehicles air conditioning when not needed can dramatically impact its fuel economy. When its feasible, roll down the windows instead of cranking up the air.

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Tesla Model S Long Range: $89990

While the refreshed Model S Plaid has captured most of the medias attention, the refreshed Model S Long Range is excellent in its own respect. If you dont think you need to accelerate to sixty in 1.99 seconds, want to save $40,000, and go a little further per charge, the Model S Long Range is the perfect premium sedan. With 405 miles of range and a 3.1 second zero to sixty run, it is likely more than what youd need a luxury sedan to do.

  • Range: 405 miles

What Does It Cost To Charge An Ev At Home

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Before buying an EV, you should look at the cost of installing a home charger, also known as electric vehicle supply equipment .

While you could plug your car into a typical wall outlet with the standard household current of 120 volts, known as Level 1 charging, it will charge your car very slowly. If your EV is newer and has a battery with a longer range, youll likely need a Level 2 home charger. These range in price from less than $200 to more than $1,000, not including installation costs.

An EVs energy consumption is measured in kilowatt hours per 100 miles, or kWh/100. Information particular to a certain EV can be found on the vehicles EPA fuel-economy sticker and in the owners manual. To calculate how much it will cost to charge your EV at home, multiply its kWh/100 by your electric companys rates for the time of day you typically charge the vehicle. That number is how much it will cost to add 100 miles of range to your car.

Self.inc found that the average annual cost of charging an EV is $460, while the average annual fueling cost for a gas-powered vehicle is roughly $838.

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How Much Does Your Car Depreciate In The First Year

Your cars value depreciates the most during the first year of its life. Some estimates indicate that depreciation can account for 57% of your cost to own the car in the first year. Depreciation steadily decreases over time so by year 5, your depreciation accounts for 48% of its origional value and by year 8 only 43% of your costs are depreciation.

The Cost Of Level 2 And Faster Charging

When talking about public Level 2 charging and Level 3 fast-charging systems, the prices are harder to narrow when compared to standard at-home costs. Thats because charging networks vary in price, not to mention availability around the country.

You can always opt to have a Level 2 charger installed in your garage. The cost isnt cheap. About $2,000 for parts and installation is a reasonable ballpark figure. Moving up to Level 2 means youll more than halve your charge time. And it can potentially add value to your home.

Every electric car can use public Level 2 stations, says Voelcker, but Nissan Leafs use one fast-charging standard while every other EV uses a different fast-charging standard called CCS.

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Average Annual Cost Of New Car Ownership Increases 5% To $9282

Most drivers can tell you what they paid for their car and maybe even what it costs to keep the gas tankfull. But the true annual costs of new vehicle ownership are trickier to track.

That’s why AAA dives into the data every year to produce a comprehensive review of ownership costs acrossnine different categories of new vehicles. Here are the highlights from our latest study:

Overall, the average annual cost of new vehicle ownership climbed to $9,282, or $773.50 a month. That’san increase of $433 or nearly 5% from last year. Drilling down further, AAA found that average costsincreased in every expense category it analyzed:

  • Fuel costs rose to 11.6 cents per mile, up about half a cent from last year.
  • Maintenance, repair and tire costs climbed to 8.94 cents per mile, up 0.73 cents.
  • Annual average insurance costs inched up to $1,194 per year, a $5 increase.
  • Licensing, registration and taxes rose to $753 per year, up $14.

“A lot of these are costs that many drivers probably don’t think much about,” said John Nielsen, AAA’smanaging director of Automotive Engineering & Repair. “But they really add up over time.”

How Much Does It Cost To Charge An Electric Car

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The single biggest question many people ask about electric cars is: What will I spend to charge the vehicle?

If youre looking at an electric car vs. a gas car, doing a bit of upfront research on charging costs vs. gas costs will help you make an informed decision.

To answer the question of cost, we enlisted the help of John Voelcker, a longtime automotive journalist and industry analyst who specializes in electric vehicles. Hes heard every argument made for electric vehicle ownership, including the cost of recharging compared to traditional refueling.

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What Is The True Cost Of An Electric Car

In the early days of electric vehicles you know, the not-too-distant past consumers willing to plug in could enter the market from essentially the luxury top or the utilitarian bottom . Not until the Tesla Model 3 was introduced for 2017 did consumers begin to have an EV option with a base price in the same ballpark as the overall car markets average price.

Today, consumers have lots more choices in a wide range of prices when shopping for a new EV. A report by CNBC estimates that, by 2023, 43 brands will offer at least one EV. That increase, along with improvement in driving range for the batteries that power EVs, will likely increase the number of consumers jumping into the EV market.

The market share for EVs in the U.S. remains relatively small according to the Pew Research Center, EV sales have accounted for just 2% of all vehicle sales in the U.S. over the past few years. Still, that penciled out to 231,000 EVs in 2020. California leads all states in EV sales, accounting for 8% of total U.S. sales.

2020 Nissan Leaf / Photo credit: Nissan

Is There Hst On Used Cars In Ontario

Whether you are going to have to pay HST or not is all going to depend on where the car was purchased from. There are a lot of people that sell their vehicle privately. Buyers who buy them from private owners will not have to pay the HST tax. Those buying from a dealership even though it is a used car will most likely have to pay the HST on this vehicle.

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Trading In Your Old Car

Discuss the possibility of a trade-in only after youve negotiated the best possible price for your new car and after youve researched the value of your old car. Find out what your current vehicle is worth before you negotiate the purchase of a new car. Check the National Automobile Dealers Association’s Guides, Edmunds, and Kelley Blue Book. This information may help you get a better price from the dealer. Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.

Gas Insurance Maintenance And Loan Interest Can Really Add Up

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What costs go into owning a car? From paying for routine maintenance to keeping up-to-date insurance and endlessly filling up the gas tank, car ownership costs can add up quickly. Knowing what to expect can save you from getting in over your head. The last thing you want to deal with is an upside-down car loan or, worse, the repo man.

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