What is the Average Monthly Cost for a Used Car?

Used Car

Owning a car, even a used car, can be quite expensive. Between insurance, financing, taxes, fuel, and maintenance, owning a vehicle can be a real drain on one’s bank account. But, that doesn’t mean you shouldn’t buy a car, or even the car of your dreams, it just means that you should know what you’re getting into beforehand. Here’s a cost of ownership for used cars that should help you budget before making your next purchase.

The Monthly Payment – As of today, the average pre-owned car payment comes in around $375. But, don’t let that scare you. By making a more substantial down payment, and financing for a longer-term, you can reduce that number considerably.

Insurance – The older you get, the lower your insurance goes. Well, no one wants to get old, and you can’t control that, anyway. But, there are a few things you can do to lower your insurance. Consider taking a defensive driving class. They’re not too expensive, and insurance companies usually will reduce your rate by 15% per year for up to 3 years. You can also drive carefully. Drivers with no points or accidents get much better rates than those with points and accidents. The type of vehicle you drive also affects your rates. Generally, the larger the vehicle, the more expensive the insurance costs.

Fuel – depending on how many miles you drive each month, driving a hybrid, or 4 cylinder vehicle, could result in some hefty savings.

Maintenance – Some vehicles do much better in this category than others. It pays to do a little research and find out which vehicles offer the highest reliability for the model years you’re interested in. Troublesome cars not only cost more to own but, frequent trips to the shop waste your precious time.

If you really want to know the cost of owning a used car, stop in at Auction Direct USA. Their large selection of pre-owned vehicles, friendly staff, and expert financing department make Auction Direct USA, Rochester’s number one used car dealer.