Owning an automobile can be an expensive venture, especially if you do not budget correctly for it. Although a large chunk of money will go to your car payment, you need to figure in other expenses when determining how to budget for a car. Take 10 minutes to calculate the entire amount of expenses for a car.
Calculate your monthly car payment. Make sure that you add in taxes, tags and interest.
Confirm the annual and monthly car insurance costs with your insurance company. For example, if your policy is $1,200 a year, then your insurance will cost $100 a month.
Determine the amount of gas that you will use during an average month. Find out the miles per gallon your vehicle gets, and whether it differs for highway or city driving. Determine the number of miles a month you will drive, and whether it will be mostly on highway or city streets. Divide the number total miles with the miles per gallon. Multiple that amount by the average amount being charged for a gallon of gasoline in your area.
Include the cost of maintenance. If the auto will need an oil change every other month and an oil change in your area is $30, then add $15 a month. Do the same for tune ups, breaks and tires.
Estimate miscellaneous charges and expenses such as tolls, car washes and windshield wiper fluid.
