How Much Should You Spend on a Car? Choosing Your Dream Car

May 09, 2022 at 11:47 am by Voice Wire

Sometimes, simply buying any old car is not enough. Many people have their sights set on more. Perhaps it is a 1965 Mustang that makes a person fall in love. Or maybe something a little more modern, like a 2022 Tesla Model S, is more your style.

Regardless of which vehicle is your dream car, there's a good chance that you're going to spend a pretty penny on whatever you buy. For example, research shows that the cost of a 1968 Z/28 Camaro in mint condition can cost a person $66,000 to $165,000. For something more family-friendly, like the 2022 Honda Odyssey, expect to pay around $33,000 or more.

So, as you can see, the initial investment amount will vary, but it could be rather substantial. And the spending doesn’t stop there; your new car will need maintenance, repairs, and more in the future. The last thing you'll want is to feel like it's a money pit that's draining you dry. Hence, consider the following things to determine if you are a perfect match. Firstly, before buying your dream vehicle, use a car insurance estimator.

Auto Coverage Calculator

Ahead of running right out and spending your hard-earned cash on a vehicle, it is best to make sure that you'll be able to afford the insurance for it. Most states, except New Hampshire and Virginia, require people to have coverage by law. But even if you live in those two states, it can still pay off to have a policy because drivers are responsible for the damage they cause.

However, this expense can get out of hand in a hurry. Factors such as make, model, and blemishes on one's record can make it skyrocket. Hence, use an insurance cost estimator to see what you'll be spending on coverage during the policy period.

The Cost of Fuel

Fuel costs are high these days, to say the very least, and that doesn't seem to be going away soon. That's why you may want to consider this aspect before buying your dream car. If the model you're thinking about has a big V8 engine and a four-barrel carburetor under the hood, it might suck down gas in a manner that you've never seen.

Thus, if you're worried about having to fill up the tank every time you turn around, perhaps a modern car would be a better fit. Many manufacturers are expected to phase out V8 motors, replacing them with turbocharged four or six cylinders. This can make vehicles more fuel-efficient, often getting anywhere from 17 to 30 miles or more per gallon.

But, of course, there are also electric and hybrid vehicles on the market today. You can choose these cars and go even further with saving money on gas. This is definitely something worth considering before buying your dream car because it can impact how much you spend during the vehicle's lifetime as a whole.

It Is More Expensive to Service Some Cars Than Others

Nobody wants to go broke every time their vehicle needs to be serviced or repaired. Yet, that could be exactly what people experience after purchasing certain vehicles. For example, buying a four-cylinder crate engine for a Ford, Chevrolet, or another domestic car and getting it installed at a dealership typically costs around $4,000. However, that price can increase to upwards of $10,000 for high-performance motors.

European and luxury vehicles are notorious for having high-dollar parts. And the labor costs to replace those parts can get pretty high too. Thus, do some research ahead of buying a car. Then, if it turns out that the estimated cost to service the ride is too much, you'll be able to rethink your strategy and find another vehicle that doesn’t do a number on your bank account every time it needs repair or maintenance.

If you’re set on getting a European or a luxury car, though, you can prepare for repair costs by setting up a car repair fund. Put money in this fund each time you get your paycheck so you can rest assured you’ll have enough money to keep your car in good shape.

Some Last Words

Provided that people have enough money for the sticker price, it is easy enough for them to obtain their dream cars. That's not the only thing car owners should be concerned about, though. Other costs can cause vehicle owners grief in the long run. So, think long and hard about the additional costs of owning a car and make sure you have enough saved up.

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