Calculating Vehicle Cost of Ownership in Tempe, AZ

What Is the Total Cost of Owning a Vehicle?

There aren’t many things you’ll spend more money on in your life than you will a vehicle. Because this is such a significant financial decision, you want to make sure that you aren’t only choosing the right car but that you can afford it. It may be natural to focus solely on the sticker price of the vehicle as you shop. But this is only part of the equation. Many factors go into the cost of car ownership.

You must understand all the facets of owning a vehicle. Then, you need to shop at the right place. Tempe Kia in Tempe, AZ, is a good place to come when you are ready to get into a reliable, comfortable vehicle. Let us help you find a car that meets your needs and budget.

Monthly Car Payment

If you aren’t in a position to pay cash for a vehicle, you are hardly alone. Many shoppers in Tempe, AZ, need to seek financing to purchase the vehicle they want. Obtaining an auto loan lets you pay for your vehicle over time, dividing the purchase price into monthly payments. You’ll want to make sure you’re comfortable with these payments and that you have plenty of room for your other obligations.

The cost of your payments will depend not only on the sticker price and sales tax of the vehicle but also on the interest rate on your loan. A better credit score and shorter loan term will get you lower monthly payments. You can plug in the price of the vehicle along with your rate and term to calculate your car payment to help you budget.

Car Insurance

Like most states in the U.S., Arizona requires residents to carry liability coverage on their car insurance. Failure to comply with these laws can result in strict penalties, including the loss of license. To obtain car insurance, drivers should carefully shop for the best rates and coverage. Premium rates can vary depending on the type of car you have and your driving history. Your insurance premium may be a monthly, quarterly, semiannual, or annual payment, depending on your carrier.

Fuel

As you budget for your vehicle, you’ll want to consider the fuel cost of your model. Gas prices fluctuate, so pay close attention to how much you spend on average during a given month and year. Evaluate how much you drive and how often you fill up as you’re budgeting for this cost. It will be helpful to shop for fuel-efficient vehicles such as hybrids. The Kia EV6 electric model is one you should consider. You won’t have to ever stop at the gas station if you own this vehicle.

Registration and Fees

Drivers in Arizona must register their vehicles with the Department of Motor Vehicles and renew that registration every year. The cost to register the vehicle is based on its age and the manufacturer’s retail value. As an example, if you purchase a $30,000 vehicle, your first-year registration fee will be $504.

Maintenance and Repairs

As a responsible car owner, you should never neglect regular maintenance and repairs. Being diligent about servicing your vehicle will improve its longevity and help it perform well. The costs of maintaining your vehicle are worth it, but you should carefully budget for these needs. On average, people in Tempe, AZ, spend about $800 a year on vehicle repairs and maintenance.

It’s also worth noting that by keeping up with maintenance, you can slow the depreciation of your vehicle. This can ensure that your car’s resale value is higher.

Find a Car You Can Afford at Tempe Kia

The last thing you want to do is get a vehicle you can’t afford. Not only do you need to budget for the purchase price of your vehicle, but you need to consider the other elements that go into the total cost of owning a vehicle. Carefully assess how much you’ll spend on registration, car insurance, gas, and maintenance. Then, when you come to Tempe Kia in Tempe, AZ, you will be ready to choose the right vehicle. Stop by today so we can help bring home a new Kia.