Beyond the car payment

Everyone knows cars need gas to go. How much you spend on gas depends on your car's engine, how far you drive, the type of car you have, and how much gas costs at the time. Even electric cars require charging. Instead of gas, you are paying for electricity at charging stations or at home.

Example: Imagine Zion has a Ford Mustang GT with a engine. It's fun to drive but not great on gas. Nailah drives a Honda Civic, which is much better on fuel because it has a 4-cylinder engine. Darian drives an electric Rivian which is powered by a battery. If all three drive about $30$‍ miles daily, Zion might spend around $\mathrm{\$}250$‍ on gas every month, while Nailah might get away with spending around $\mathrm{\$}100$‍. Darian would most likely pay $\mathrm{\$}60$‍ in charging costs.

You have to have insurance to drive. How much you pay can change a lot depending on how old you are, your driving record, and the type of car you drive. If you are financing or leasing a car, you will be required to have full coverage on the car, which is a more expensive type of insurance.

Example: Amari, who's $22$‍ and drives a speedy Subaru WRX, might pay around $\mathrm{\$}200$‍ a month for insurance because of the car's performance and Amari's age. In contrast, Nia, at $45$‍ with a Toyota Camry, could be paying around $\mathrm{\$}100$‍ a month. Her experience and her car's reputation for safety help lower her costs.

Regular maintenance, like oil changes and occasional repairs are part of owning a car. The expenses can vary greatly depending on the car model and the repair type.

Example: Khalil drives an older BMW 3 Series, and fixing it can be expensive. An AC compressor replacement could cost him over $\mathrm{\$}\mathrm{1,500}$‍ mostly because a BMW is a European-made car. Sade, even with a newer Ford Escape, might spend closer to $\mathrm{\$}600$‍ for the same repair.

Cars loaded with lots of features and electronic parts are also more expensive to repair. Compared to simpler cars, their complexity means there's more that can go wrong and it's harder to fix.

Example: Maya's Honda Civic needed a new windshield, costing her $\mathrm{\$}250$‍. Alex's Tesla Model S also required a windshield replacement, but because it had built-in sensors, the cost was $\mathrm{\$}\mathrm{1,000}$‍.

You need to pay to register your car with the state you live in, and the cost can change depending on where you are and what kind of car you have.

Example: In Texas, if you're registering an electric car like a Nissan Leaf, you have to pay an additional $\mathrm{\$}200$‍ compared to registering a non-electric car, like a Hyundai Elantra.

Some places make you pay extra taxes for having a car. How much you pay depends on where you live and how much your car is worth.

Example: Maddy, who lives in Virginia and buys a new Chevrolet Silverado, could face around $\mathrm{\$}500$‍ a year in taxes for her truck, showing how tax costs can rise with a car's value.

In some cities, parking can cost a lot.

Example: Parking a car in downtown San Francisco could reach between $\mathrm{\$}300$‍ and $\mathrm{\$}500$‍ a month, just for keeping your car somewhere.

Cars lose value over time. How fast this happens depends on the kind of car and how much people want it.

Example: If Jasir buys a new Kia Optima, it could lose up to $20\mathrm{\%}$‍ of its value in just the first year. But, the opposite was true for Teslas in 2021. Teslas went through a period of , instead of the typical depreciation, because the demand was so high that even used models were selling for more than they originally cost.

While gas, insurance, and registration fees are mandatory costs of owning a car, there are also plenty of optional expenses that are all about making your car more fun and personal. For example, window tinting can not only make your car look better but also keep it cooler by blocking out the sun. Custom rims can give your vehicle a unique look, and an upgraded sound system can make every drive more enjoyable. For those who love a bit more power, adding performance parts might be tempting.

These are the kinds of extras you can choose to personalize your ride, but the good news is, you can totally go without them if you want to keep costs down. Unlike the essentials like gas and insurance, these optional costs are all about what you want for your car and what fits your budget.

By looking at these additional costs through real-life examples, it's clear that owning a car involves much more than just making your monthly payment. Factoring in all these expenses is crucial to ensure you're financially prepared for the total cost of car ownership.