Being a single mom can be challenging at times. It requires you to be responsible for so many things, including finances. One of the larger expenses you will encounter as a single mom is buying a car. You will want to be prepared and know the fees that are associated with buying a car, especially if it’s your first time. Knowing what to expect will make the process so much easier and less stressful. Let’s talk about the fees that are associated with buying a car so you can feel confident and prepared for the upcoming expenses.

New Loan Payment

One of the most significant expenses when buying a car is financing. This means taking out a loan and paying it back with interest over time. When buying a car, you typically need to have a down payment. Furthermore, your interest rate is determined by your credit score. Having excellent credit will save you hundreds if not thousands of dollars!

It’s essential to research your financing options carefully. Different lenders offer different interest rates and how many years you can take out the loan. As a result, make sure to shop around at your local bank, credit unions and even the dealership to get the best loan rates. Having excellent credit gives you more opportunities. Want to know what your car payment will be? Click here.

Taxes and Fees

In addition, be prepared to pay for tax, title and registration. If you’re like me, when I was first starting out, I added these fees to the loan because I didn’t have the cash. As a result, my monthly payments were higher. These fees vary depending on the state you live in and the type of car you buy. These costs can add up quickly and can affect your budget or what I like to call your spending plan. If you want to know how much the tax, title and fee’s will cost you, check out your local DMV.

Insurance Cost

Another expense of owning a car is insurance. You will need to carry car insurance to protect yourself, others, and your car in the event of an accident. Insurance rates vary depending on your driving history, the type of car you drive, and the coverage you get. As a single mom, you need to consider the insurance cost before purchasing a car so you can add it to your spending plan. Shopping around and calling different insurance agencies will get you the best insurance rate.

Maintenance and Repair Cost

Cars require regular maintenance and repairs to keep them running smoothly, and these costs can add up quickly. Think about the oil changes it needs every three months. As a matter of fact, it’s a good idea to add vehicle maintenance and repairs to your spending plan.

Beware of Extra Fees

I do want to bring it to your attention that when buying a vehicle you want to make sure you are not paying extra fees or “junk fees”. These fees can add up quickly and your loan amount will be more than you anticipated. Take your time discussing any extra fees with the salesperson or loan officer to make sure you know what fees are included. Some examples of junk fees are paper statements and worthless add on products for auto loans. An example is GAP (guaranteed asset protection) insurance. Another fee that you may be asked is to purchase extended warranties. If it’s not something you were intending on purchasing, you need to be able to say “no”. Consumers can submit complaints about financial products by visiting the CFPB’s website.

One last thing…

Owning a car can be expensive, but knowing the fees can help you be prepared. As a single mom, it’s especially important to consider all the costs associated with owning a car. By doing so, you can make an informed, confident decision on the type of car to buy. Remember to add the new loan payment, insurance, maintenance repairs, and fuel expenses to your spending plan. Doing so will help you direct where your money is going each month so you never overspend.

💜Renee