Buying your first car is a huge milestone, and the excitement can easily lead to tunnel vision. With all the focus on picking the right color, features, and initial price, it’s common to overlook some of the less thrilling (but equally important) costs of car ownership that don’t show up on the sticker.
While affordability and aesthetics are important, don’t let them distract from the big picture of future ownership costs. Many first-time buyers opt for used or nearly new vehicles to save money, but even a great deal comes with additional expenses. Thinking beyond the sticker price, budgeting, and planning for maintenance repairs will save you money and stress down the road.
Here are five overlooked expenses you should be aware of and ways to prepare for them before buying your first car:
- Depreciation
You might not realize it, but your car starts losing value the second you drive it off the lot. And it might not seem important now, but it will be if you want to resell or trade it in later.
When looking at new vehicles, consider buying slightly used, even a one-year-old car has already gone through its steepest depreciation. This way, your car can still have modern features, but the initial cost will be lower, which allows you to save more for future maintenance and repairs.
- Unexpected Repairs
Even well-maintained cars have issues such as drained batteries, faulty engine sensors, or worn-out components. If your vehicle is past its factory warranty period, you'll be expected to pay for any repairs out of pocket. These expenses can be tough on any driver, but especially shocking for a first-time car owner.
It’s advisable to have an emergency fund in these situations to soften the blow of costly repairs. For greater stability, you can proactively invest in supplemental vehicle coverage before any major issues arise. A little planning now can save you a lot of stress (and money) in the future.
- Ongoing Maintenance Costs
As an investment, your vehicle will inevitably continue to cost you as time goes on. Beyond the purchase price, you should budget for routine maintenance such as oil changes, brake pad replacements, filter changes, and regular fluid checks. These predictable expenses keep your car running smoothly and help prevent small issues from becoming major problems.
For larger, unexpected repairs, like engine or electrical issues, have an alternate plan in place for how you’re going to cover them. A service contract or extended warranty coverage can help reduce out-of-pocket expenses when expensive repairs come up and protect your vehicle over time.
- Worst Case Scenario
Even if you’ve planned carefully, life can throw unexpected challenges your way. If your vehicle is ever stolen or totaled, GAP coverage pays the difference between what you owe on your loan or lease and the car’s current market value.
For someone buying their first car, this protection can be a lifesaver. It prevents you from being left with a major financial burden and gives you peace of mind that you’re covered, no matter what happens.
Your first car is one of the biggest, long-term purchases you’ll make, so it’s important to know it's not just a one-time expense. Whether you’re commuting to work, heading to class, or planning your first cross-country road trip, your vehicle will be a daily part of your life — and your budget. Knowing what ongoing costs to expect and being prepared is the key to keeping your car experience affordable and stress-free.