: Experts recommend putting down at least 20% of the car's price to reduce interest and avoid "underwater" loans.
When you first buy the car, several one-time or initial fees apply: cost of buying a car
: Costs to legally register the vehicle with the DMV average about $815 per year but vary widely by state. 2. Ongoing Monthly Expenses : Experts recommend putting down at least 20%
Beyond the principal loan payment, regular monthly costs include: Ongoing Monthly Expenses Beyond the principal loan payment,
: Some experts recommend keeping your payment alone under 15% of your monthly take-home pay .
Depreciation is often the single largest cost of car ownership. A car's value "drops like a rock" as soon as it leaves the lot. AAA estimates that depreciation accounts for a significant portion of the total annual ownership cost, which hit an average of in 2025/2026. Budgeting Guidelines