Thompson Sales Guide to the Costs of Car Ownership

The upfront costs of buying a car are only part of the total cost of ownership for your vehicle. The truth is, it costs money to own and maintain a vehicle. If you’re planning on purchasing a car, it’s good to have an idea of what these costs will be so that you can budget for them.

Today in the Thompson Sales blog, we’ll talk about the costs of owning a car, so you know what to expect.

How much of a down payment will I need for a vehicle?

If you’re planning on financing your car, you’ll need to make some sort of down payment. It doesn’t necessarily have to be a large amount of money, but keep in mind, a bigger down payment means smaller monthly payments. Since the down payment is usually a decent sum, it will be your primary cost of car ownership.

How do I make monthly payments for my vehicle?

Whether you’re financing or leasing, you’ll need to make monthly payments for your vehicle. For a lease, this is ongoing until the end of your lease agreement. For financing, you’ll have this payment until your car is paid off.

How do I pay for Missouri sales tax for my car?

Missouri’s sales tax is 4.225 plus your local sales tax.

You will pay your Missouri sales tax as part of the payment installment plan with your vehicle, per a Missouri law that went into effect in August 2021.

How much interest will I pay with my car loan?

If you’re financing your vehicle, there will be some interest built up through the course of your loan. The higher your interest rate, the higher the cost will be.

How much car insurance do I need in Missouri?

Your car needs to be insured. If you’re financing, you have to have full coverage until you own the vehicle. Of course, full coverage is recommended anyway, as it ensures you get the most compensation possible in case of an accident. Make sure to shop around for insurance rates to get the best one possible.

What types of repairs and maintenance will I need to do on my vehicle?

Occasionally, your vehicle will need repairs and maintenance. Ongoing car maintenance for your vehicle will require scheduled expenses, such as oil changes, new tires, and brake pad replacement.

Keeping all of this in mind isn’t meant to intimidate you. Instead, it helps you create a budget that ensures you’re able to afford the vehicle you choose!

Where can I purchase a new or used vehicle in Springfield, Missouri?

If you’re in the market for a new or used vehicle, Thompson Sales is here to help. Our friendly and knowledgeable sales staff will listen to your wants and needs while helping you choose a car that fits you perfectly. We know everyone has a different budget for their car, so let us help you find one that matches yours. Contact us today for more information or stop by the Thompson Sales lot and take a test drive. We look forward to seeing you here!