Car Maintenance Costs Be prepared. Even if you pay cash for a car, it will still cost you money after you buy it. Here are some costs to think about before you plunk down your hard-earned dollars.

Car Insurance

If you're under age 21, insurance will cost more than if you're over 21. No matter what your age, however, insurance probably is going to be your biggest expense, so check with a couple of insurance companies to get an idea of what you'll be paying.

Repairs

If you buy a used car, repairs will probably be your second biggest expense. To avoid costly surprises, have a mechanic check out the car before you buy.

Gasoline and More

Since every car needs gas, think about the number of miles you drive each week before you buy a car; this will help you determine whether you need a car that gets good gas mileage. You will also need to change the oil, tune up the engine and buy new tires every so many miles. And don't forget yearly license fees.

Extras

Other costs include anything extra you want to buy for your car, such as new seat covers, a CD player and good speakers, or special wheels or hubcaps.

Your Budget

Also think about your income and your Other expenses. If your budget is already stretched to the max, you are going to have to decide what you're willing to give up: some of the things you already spend your money on or some free time. If you can't tighten up your budget, you'll need to work more hours or look for a job that pays more money. No doubt about it: even a free car costs money!

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Select the correct answer.
Why is car insurance more expensive for drivers under 21?
A.
They drive more miles.
B.
They have more accidents.
C.
They carry more passengers.