Your First Car

Costs for a car

The cost of the car is Much more than the price tag. Let’s say you find a car for $5,000, which might feel like a lot, or like a great deal, completely depending on your finances.

But the costs below should be considered when looking at if you can afford a car.

All of these costs have a WIDE range of potential values. So please know these numbers will be different for you, but save yourself a lot of hassle by not assuming you can dodge any of these costs. Assume these costs are a minimum.

If you are driving your car roughly 15,000 miles per year, your average annual running cost sums to ~$4,980

  • Consumables and replacement parts: ~$2,880/year
  • Windshield washer fluid. An average of $6 every 3 months. $6 x 4 = $24/year
  • Oil Change costs an average $90 every 4 months. $90 x 3 = $270/year
  • Tires will cost you an average of $150 per tire once every 3 years. ($150 x 4) / 3 = $200/year
  • Gas costs an average of $3.60 per gallon. The average gas mileage of cars/suvs is 25.4 miles per gallon. 15,000 / 25.4 =590.55 gallons per year. 590.55 * $3.60 ~ $2,126.00
  • Windshield Wiper Blades average about $30 and need replacing every 6 months. $30×2 = $60
  • Brake pad replacement costs an average of $200 and needs to be replaced roughly every year. $200/year
  • Required external costs: ~$2,100/year
  • Insurance costs an average of $950 for 6 months for full coverage. (Full coverage is required if you took out a loan.) $950 x 2 = $1,900/year
  • Annual Registration averages about $200/year

Use of a Car

  • What kind of gas do I use?
    NOTE: DO NOT intermix these 4 options. Your car is designed to use 1 of the 4, and unless it says otherwise in the manual, they CANNOT be switched.
    85, 87, 89, 91, 93:
    85 is hard to find, and is not recommended for many cars at all. Unless your cars manual explicitly says you can use 85, DO NOT USE IT.
    For 87-93: some cars explicitly tell you to use a certain number for a “cleaner engine”. The difference between 87 -> 93 is how well filtered the field is from potential sediment and also addition of some built in engine cleaners. Money wise, as I do not have a car that specifically says something different, I use 87.
    Diesel – Often more expensive per gallon. This field will be a specific type of fuel that your car specifically needs. It often has a green handle (but be careful as some fuel stations branding make all of their handles green.) The diesel pump should be separated from the numbered pumps noted above and should consistently have a different diameter to the fuel spout. (Won’t fit in standard gasoline tanks)
    Ethanol – Often more expensive per gallon. This field will be a specific type of fuel that your car specifically needs. You will need to know where you can refuel as this is more difficult to find.
    Bio-Diesel – Often more expensive per gallon. This field will be a specific type of fuel that your car specifically needs. You will need to know where you can refuel as this is more difficult to find.
  • What kind of wiper fluid should I use?
    There are several different types of windshield wiper fluid. The average is Blue. But I have seen Red, Orange, Purple, etc. Between these, it is often something special they have added to the liquid and the color will differentiate that. Almost always, the blue is fine. If it is the middle of winter, in a cold climate, you may want to grab the color with the best anti-freeze temperature.
    If you see Green, read the label carefully and make sure it is windshield wiper fluid and not Radiator Fluid.
  • How low can I let my gas tank go before refilling.
    This changes from car to car. I imagine that eventually you will push the limit to find that boundary, but my recommendation is that the moment your car tells you that you are at E, start looking for a gas station.
    If you are on a freeway, and may not have access to a gas station for 40-60 miles, I recommend keeping closer tabs and start looking for a gas station at about ¼ of a tank.
    If you live in a colder climate, when the temperature goes below 32 degrees F (0 degrees C), do not let your gas tank get below ¼ of the tank. If you let it run too low, the gas can freeze in the tank and stop your car from running until you can thaw it.
  • If you chose to do your own maintenance:
    • Please find a knowledgable friend that can help you where possible.
    • If you change your brake pads, or refill the brake fluid, Once the car starts, make sure to pump the brakes inside before leaving Park or Neutral. They take a pump or two to fully pressurize, and work as expected.
    • Never untwist or unscrew caps under the hood while the engine is HOT. (The radiator specifically is known for shooting pressurized HOT liquid on people.)
    • Do not add fuel to your car while it is running.