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Total Calculation


A few weeks ago we talked about pulling the trigger on a huge purchase–your “new” car. We discussed practicing making payments, and you are well on your way to saving a huge chunk of cash for this long-awaited, glorious event.

Hold on, we aren’t quite done yet. Can you REALLY afford this car? The “payment” is not the only cost of the car. Different cars come with other different costs. Don’t forget to take a few more things into consideration:
  • Depreciation occurs rapidly and not everybody can absorb that cost
  • Taxes, licensing and other fees occur every year or every other year, depending on where you live
  • Insurance differs widely from car to car and can also depend on the age and model of the car, your driving record, and your age
  • Cost of financing can really get you if you don’t pay cash
  • Is it a gas guzzler?
  • Maintenance and repairs–while some may require very little, others are quite expensive

Just make sure you do your research about ALL the costs before driving it off the lot.

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