How important is MPG?

MPG is an important metric to know about any vehicle that you’re considering purchasing. It tells you about the difference in cost between operating different vehicles by giving you a sense of how much money you’re likely to spend on fuel.

What is usually the greatest expense in owning a vehicle?

1. Car Payments. Making payments on your car is the biggest, most obvious expense of your vehicle. In 2020, the average monthly car payment on a new vehicle has risen to $550, according to loan statistics from LendingTree.

What are the expenses to consider when creating a budget for a car?

If you plan to buy a car, use a budgeting program to figure out what it will actually cost. You’ll need to factor in purchase costs and taxes, insurance, maintenance, tolls and parking, gas and sundry costs. It’s a good idea to create a separate an emergency repair fund just in case.

How much money do you save per mpg?

Improved fuel economy saves you money every time you fill up! A vehicle that gets 30 MPG will cost you $853 less to fuel each year than one that gets 20 MPG (assuming 15,000 miles of driving annually and a fuel cost of $3.41). Over a period of 5 years, the 30-MPG vehicle will save you $4,263.

What is the largest expense of a new car?

Owning a car comes with a variety of expenses. There’s gasoline (or diesel fuel or electricity), routine maintenance and insurance, for starters. But nearly 40\% of the cost of owning a car is one you might not even notice.

What are expenses for a car?

But that’s far from the true cost to own a car. For vehicles driven 15,000 miles a year, average car ownership costs were $9,561 a year, or $797 a month, in 2020, according to AAA. That figure includes depreciation, loan interest, fuel, insurance, maintenance and fees.

What are monthly transportation expenses?

Transportation is the second-largest budget item for most people, with average monthly expenses of about $819, including car payments, gasoline, and insurance. This should include all your regular expenses of commuting and just getting around town.

Is premium gas more fuel efficient?

Premium gas gives you more miles per gallon than regular gas. In actual fact, you’ll get a greater range of fuel economy between different brands of regular gas, than you will between the same manufacturer’s regular and premium gasses.