Cost of buying first car?

Question

I am considering buying my first car, and I was hoping that I could get an idea as to how much it will cost me, roughly, in terms of buying a (used) car, as well as insurance etc (I know it depends what car I get, who from etc... I am simply looking for some rough ideas.)
Thanks in advance

Answer 1

Make sure that you can afford the payment if you need a loan. The insurance has to be full coverage if there is a loan too and that is higher.
$10,000, 48 month loan = $250/month. Insurance probably around $100-150 depending on your situation. If you have insurance thru your parents give that agent a call and see what they say.

Good Luck!

Answer 2

It really depends on how much competition you have in your area, and you also need to bear in mind that certain vehicles (like sports cars and SUVs) cost A LOT more to insure. But here's an example: Here in Detroit, the car competition capitol of the world, they're advertising brand new 2007 Honda Civics -- which are reliable cars that get good gas mileage and don't cost a fortune to insure -- for $15,995.00. Now, bear in mind that's not a fully loaded Civic, but it has the basics like A/C and a stereo with a CD player and a rear window defroster, which is a MUST in Michigan.

As for insurance, that also depends on what state you're in and how close you live to a big city. Another example: Insurance costs a lot in Detroit because we're a no-fault state and we have a lot of accidents and car theft in Detroit. When I was single, it cost me about $700.00 every six months for full coverage on my 2001 Pontiac Grand Prix, and that was through an insurance company who beats EVERYONE (USAA, for military only), so if I had to go with AAA or State Farm it would have been more like $900.00 every six months for full coverage.

A word of warning about used cars: You may save money on the sticker price, but the finance rates for used cars are much higher than new cars. Right now there are a lot of car makers that are offering financing as low as 0% on some cars, but for used cars the financing usually starts around 8% and can go all the way up to 19%. So be sure to check the rates before you buy, and also bear in mind that you should NEVER get a used car from a dealer without a warranty.

Does that help?

Answer 3

I suggest you go with a certified used car from a reputable dealer. It will cost more but you get a warranty. Otherwise, the car comes "as is".

Each car costs a different amount to insure. You should call your insurance agent to discuss the various cars (make, model, year) you are considering. They can also run a background check on the car's VIN to see if there have been any insurance claims for damage by prior owners on it. (Toyota Corollas, Honda Civics & Accords are typically excellent choices)

With a modest loan you can consider buying a somewhat better (more reliable & safer) car. It will also boost your credit history and score as you pay off the loan. Work with a couple of banks or credit unions to compare loan rates and terms. Give the lender a good down payment and keep the monthly payments well within your budget.

You will also need to pay sales tax when you register the car. When the vehicle license registration is due for renewal you need to pay that and may also need to get a smog check as well.

Answer 4

Buy something that's got a long mot and as much tax as possible already on it.
Depending on your know how, you might like to get something cheapish, safe but will not hurt the bank too much.
There are cars out there around 500 pounds that fit the above. In a years time it could cost you 200-300 to fix for mot...but for a years driving, 500 is cheep. You could even throw it away at these prices.

Plus for that price the insurance will be a minimum.

Then in a years time you'll have more experience and a better idea which cars you like and dislike, that's the time to start spending serious money on newer models.

Answer 5

Here are some rough numbers.
Let's say it is cheap and costs 13000 usd. Figure on a monthly payment for 5 years of about 250 usd.
Insurance will be about 100 usd per month.
Gas will cost about 15 cents per mile for about 12000 miles per year or about 150 per month.
You could argue that at the end of 5 years you will sell the car and get some money back. But, probably you will want to continue driving, so the process will start again.
So roughly it will cost $500 per month.

Answer 6

I got my NEW first car on 2005. I bought a Toyota CorollaS. I had good credit so my APR was around 3% plus my $2000 downpayment with a 5 year financial plan my monthly payments came to 329. Insurance went up because i had just turned 21 and i bought a new car so i pay 115 monthly. This payment always kills me every month. I like having my own car though.

Answer 7

Private owner you'll save money on the delivery and handling fee they charge from $99 to $600. BUT the car won't be inspected and you won't get a warranty!

Dealer, the car is most likely certified, not salvage, not flooded (because the title will say so, if it is), and you're allowed to take it to a mechanic to check it out! BUT the fee is what cost! But you get what you pay for.

I tell everyone at the dealership where I work, "Better to pay now, than pay later" if you buy a terrible car, you'll be putting more money into this piece of junk than if you spend extra money and get a good car that'll last!

Financing is also a good option! If you want to spend more than you have on a good car!

Answer 8

If you're under 25...

2001 Honda Civic
$10 000
$2000/yr for a guy $1500/yr for a girl insurance
$500 maintanace

If you're over 25...

2001 Honda Civic
$10 000
$1500/yr for a guy $1000/yr for a girl
$500 maintance

2003 G35 Coupe
$25 000
$3000/yr for a guy, $2200/yr for a girl
$800 maintanace

Answer 9

a price range for the car would help!!
The type of car and the engine size will effect the cost of the insurance. How much are you planning to spend on the car

Answer 10

I don't know your your budget, but the newer the car, the better.

You can get a brand new car in the "city" class for about 6-7 thousand pounds, for example a Citroen C1, or VW Fox.