Watch out for the hidden costs of that new vehicle!
Besides not having a payment, one of the reasons we choose to drive older, unsexy cars is because our cost to insure them is affordable.
For our ’09 CRV and ’12 Toyota Sienna, we pay $64 per month for insurance. That is for full coverage policies on both vehicles and multiple discounts for being good drivers. (See Mom & Dad, I turned out to be a good driver after all! ?)
I called my insurance agent to find out exactly how much our insurance would go up if we replaced our vehicles with shiny new ones. 2020 models like the ones we already have.
While the cost wouldn’t go up as much as I thought, it would still be a 36% increase each month. That ain’t nothing to sneeze at people! Driving new cars would cost us close to an additional $300 per year to insure. Doable, yes, but something you’ll definitely want to consider when you’re choosing which car is right for you.
Why am I sharing this with you? Just to remind you to think about the hidden costs when upgrading or buying a big-ticket item, like a car.
How much will it cost to insure your new car?
How much will it cost to operate this new vehicle?
Consider gas mileage as well as repair and maintenance costs.
We stick with Toyotas and Hondas because they are inexpensive to repair when compared to Nissans (in our experience, YMMV).
Luxury vehicles will cost considerably more than a boring (but hella reliable) Honda.
Hidden expenses eat into all those things you say you want to do, but don’t have the money for. Things like traveling!
The hidden costs of that shiny new SUV could be enough to cover that trip to the beach you keep talking about.
Just something to consider…