How to understand the real cost of your car, beyond your monthly payment

• Once you’ve chosen a car and secured a lender, make sure to factor in additional ownership costs.
• These can include obvious costs and ones that are often overlooked.
• To prepare for ownership, here are eight types of costs to consider, and what you need to know about each.

Congratulations — you’ve found the car and financing option that are right for you.

(If you haven’t, check out our tips for how to do so here.)

Before you hit the road, it’s important to keep in mind that the total cost of a car extends beyond your monthly payments. According to Car and Driver, a car owner will spend an average of $699 each year on financing — but there are many other monthly costs that can add up throughout the year. Following are some additional costs you should consider:

Insurance

Before committing to a vehicle, decide which level of coverage you need. Most lenders will require at least liability, collision and comprehensive insurance, but you may decide purchasing above the minimum requirement is right for you. Talk to friends and family for recommendations, research options online, and then shop around for the best deal.

Many factors — including type of vehicle, where you live, how much you plan on driving, your driving record, and the amount of coverage needed — can affect what you end up paying.

Fuel

The price of gas varies, but it’s something to keep in mind. According to GasBuddy, over the past six months, average gas prices in the US have fluctuated from $1.74 to $2.24 a gallon, while topping well over $3 in some states.

Whether fuel is going up or down, there are ways to save. Find gas stations on your usual routes to avoid those extra miles, use apps to find the lowest price, and consider steps you can take to improve the fuel efficiency of your car.

If you’re thinking about going electric to save on costs, make sure to include the cost of any public electric-vehicle charging and home installation of a rapid charger. EVs may be much cheaper to power, but they can still ding your wallet. The US Department of Energy also puts the annual charging cost of all-electric vehicles at $450 to $950 a year.

Maintenance and repairs

From oil changes to tires and beyond, prepare for the expected and unexpected maintenance and repairs that come with owning a car.

In 2017, AAA found that new vehicles require an average of $1,186 annually to repair and maintain. And while some cars may require less maintenance, all cars inevitably will need parts replaced, like tires and windshield-wiper blades.

The costs of repairs and maintenance can vary from one model to the next, so do your due diligence before purchasing a vehicle that may have a more expensive upkeep. Some maintenance and repairs can be handled by you, while some may need an expert’s skill.

When the need for a mechanic arises, make sure you take steps to find one you trust.

Tolls

Taking frequent rides on your local thruways? You might come across more tolls than you had expected on roads, tunnels, and bridges. Some toll roads give you a discount for using a toll tag, so if you frequently travel toll roads, it could be helpful to invest in a toll tag that automatically deducts toll payments from your bank account monthly.

Review your average monthly toll payments and determine a way to plan and prepare for similar charges month to month.

Parking

It’s easy to overlook recurring costs, such as parking, but if you live or work in a metropolitan area, it can run you hundreds of dollars a month.

But there are ways to trim costs. For example, you could check if your garage will offer a discount if your parking needs are at different times than most people in the area. If you’re commuting for work, talk to your employer about subsidies or reimbursements.

Additional fees

Be sure to check state and local regulations. Many states or counties have a yearly registration fee, often based on the age, weight, or value of the vehicle. As of now, according to AAA, many states also require emissions tests for some vehicles, which car owners must pay for. Car owners also could owe for necessary adjustments if their car is above the emissions limit.

Some states also charge personal property taxes on vehicles and require regular vehicle inspections. Again, make sure you’re on top of all regulations that apply based on where you live.

Depreciation

While almost all cars will depreciate in value, buying a car that holds its value better over time, and taking care of your vehicle — including regular car washes to keep it looking its best — can help you when the time comes to trade in for a new ride.

Human error

Some costs aren’t inevitable, but the occasional unexpected cost can add up too.

If you lose your car keys, for example, the cost of replacing a basic fob runs from $50 to over $100, while a keyless remote entry can often range from $220 to $500. If you are the forgetful type, you might want to invest in a smart key finder that works through your smartphone.

The occasional parking ticket or optional cost, like roadside assistance plans, might come up too.

Knowing all the costs can help you prepare for ownership

Vehicle costs are the second-biggest expense in the US after housing, according to Edmunds. But knowing and preparing for the additional costs will put you in a better position when disruptions pop up.

And once you have that peace of mind, you can enjoy the ride.

Here’s how Capital One can help car buyers navigate costs.  

This post was created by Insider Studios with Capital One.