We recently worked with the Sun Summer Program at Gresham High School, helping through a game of "The Amazing Race" to learn about the expenses associated with vehicles, and also information about the proper maintenance of vehicles. What we found is almost all the high school students were aware of the purchase price expense and definitely knew about insurance expense, then with all the recent fuel prices issues, had some knowledge about that. But budgeting for maintenance, repairs, and tires they were not really as familiar with those expenses.
All four of these expenses need to be figured into the equation of whether you can really afford a vehicle or not. The price of the car or being able to afford the payments, seems to be what is considered first and foremost. But realistically, it can be the more minor portion of a vehicle expense. The insurance expense of the vehicle, is good to know ahead of time, and figure in the cost.
You also need to look at the type of vehicle it is, what type of gas mileage does it get? Ask yourself can I afford to fill the gas tank? Some cars are as much as $100.00 to $175.00 (if it is a diesel powered vehicle) just to fill the gas tank. This can add $400.00 to $700.00 per month towards driving expenses if you drive 200 to 300 miles a week.
As far as what type of vehicle it is, this can determine what it will cost to maintain. A vehicle with a timing belt can be more expensive to maintain then one with a timing chain. Especially, if the timing belt is required to be replaced every 60,000 miles. A specialty European vehicle is going to be more expensive to repair and maintain, then a basic domestic or asian vehicle. Then when you get into a more specialty asian vehicle, they can be more expensive than a basic one. The reason some of these cars are more expensive to maintain and repair, is that the parts are more expensive and there can be a lot more labor involved in some of the repairs. Some of the specialty and higher end vehicles can be a lot more intricate to work on. There are vehicles that have headlight bulbs that cost over $125.00 just for the bulbs, and the front bumper needs to be removed to replace them. The sockets or igniters for those bulbs are around $1,000.00 each just for the part. Properly servicing, repairing and maintaining a vehicle can help retain the vehicle value. According to The U.S. Dept. of Transportation statistics, over the vehicle lifetime, it costs about ½ to maintain a vehicle then it does to perform repairs as the vehicle systems start breaking down.
Realizing there is so much more than just the price of the vehicle figured into vehicle expense, is very important. This can help you to make a good purchase decision and be able to afford car ownership, to understand the importance of keeping the vehicle maintained properly.