If you’re like most teenagers, daydreams about getting your license do not involve driving a beat up clunker, struggling to pay for gas or begging your parents for the cash to pay for repairs. However, unless you prepare in advance, that’s often the reality of the situation. Before you get behind the wheel, make sure you won’t get behind the 8-ball financially. Consider the real cost of owning a vehicle and your individual needs and calculate how much should you save up beforehand based.
Cost of Owning A Vehicle
Cost Of Vehicle – On Average About $2,000 and $10,000 In most cases, a used vehicle is the way to go, so that is what we will discuss here. However “used” does not necessarily translate to “cheap.” The price of a used vehicle fluctuates but even a very used vehicle can come at a pretty hefty price tag. You want something reliable, so be prepared to fork out at least $2,000 upfront. If you don’t pay that much upfront, you may end doing so on repairs in the long run.
Cost Of Insurance – $1,200 To $4,900 Of Added Premiums Per Teen Driver The average insurance premium for teens is $2,171 per year as of 2009, according to Insurance.com’s research service, RateWatch. That translates to approximately $180 per month. Don’t forget, the newer the car or the worse the driving record, the higher the premiums.
Cost Of Fuel – $2,000 Annually, Per 15,000 Miles With average gas mileage of 25 miles per gallon on many used cars and gas prices at $3.00 per gallon, if you drive just 15,000 per year, you’ll spend approximately $2,000 a year in gas. Of course, that amount rises with the cost of gasoline – not to mention if those road trips add up and you go over 15,000 annually.