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Buying a car is exciting, but it’s also a significant financial decision. Between shiny dealership offers and online listings, it’s easy to focus only on the sticker price and monthly payment. However, owning a car means more than just making your loan payment each month. So, how much will your next car really cost? Here’s a breakdown of the most important expenses to consider and how American Heritage can help you manage them wisely.

1. The Purchase Price (and Financing)

The car’s sticker price is just the beginning. Taxes, dealership fees, and extras like warranties can add hundreds or even thousands to your final cost. That’s why getting pre-approved for an auto loan is a smart first move; it helps you know what you can afford and negotiate with confidence.

Tip: American Heritage offers low-rate auto loans with terms up to 84 months and no payments for the first two months on a 63-month loan at rates as low as 5.49% APR.* Whether you’re buying new or used or looking to refinance for better terms, we’ve got you covered.

If you want know what you will be approved for, consider submitting a pre-approval application for an auto loan with us. The process is simple and will put you one step ahead when searching for your next car.

2. Auto Insurance

Car insurance is mandatory and can vary widely based on your age, location, driving history, and the type of car you drive. Premiums also differ among companies, so it’s smart to get quotes before you buy.

Tip: American Heritage members can save on auto insurance through Liberty Mutual Insurance presented by TruStage™ Insurance. Get a quote online through the TruStage™ website or call 888.380.9287.

3. Registration, Title & Taxes

These upfront costs often get overlooked, but they’re necessary for driving legally. It’s important to remember your car’s registration and its title are two different things. The registration is certification that you can drive your car on public roads and connects the vehicle to you and your state. The title is a legal document identifying you as the owner of the car. Expect to pay title and registration fees when you buy your car, which can be influenced by the car’s value and your state.

Tip: Ask for a breakdown of these costs when finalizing the deal so you’re not caught off guard.

4. Fuel Costs

Gasoline or electricity? Either way, it’s a recurring cost you’ll want to budget for. Fuel efficiency can make a big difference, especially if you commute daily or take long road trips.

Tip: Use tools like Fuel.Economy.gov to estimate your fuel costs based on the car’s make and model.

5. Maintenance and Repairs

Whether your vehicle is brand new or just new to you, you must perform regular maintenance. Oil changes, tires, brakes, and surprise repairs can add up.

Tip: Budget about $50–$100/month for maintenance. Want peace of mind? Ask about Mechanical Breakdown Protection (MBP) and Guaranteed Asset Protection (GAP) insurance offered through American Heritage to protect against costly repairs and depreciation.

6. Depreciation

Cars lose value over time. In fact, a new car can depreciate by 20%–30% in the first year alone. This won’t hit your wallet immediately, but it does affect trade-in and resale value later.

Tip: If you’re financing a vehicle long-term, GAP Insurance can help pay the difference between your car’s value and your remaining loan if it’s totaled or stolen.

7. Parking and Tolls

If you live or work in a city, factor in the cost of parking passes, meters, or garages. And don’t forget tolls, especially if you’re frequently on the highway.

Tip: Use your navigation app to choose toll-free routes or find parking options and their prices. If carpooling and public transportation are options, at least some of the time, you can also save some cash.

Bonus Tip: Shop Smarter

Skip the dealership stress! Use the CUDL AutoSMART shopping tool to research vehicles, compare prices, and get pre-approved for your auto loan, all online and all at your own pace.

Not Ready to Buy Your Next Car?

If you find yourself still hesitant to purchase your next car, buying isn’t your only option. Auto leasing allows you to rent a car in your name in exchange for making monthly payments. Auto leases will have a set term (generally anywhere from 2 to 5 years) in which you’ll be able to drive the car. At the conclusion of the term, you’ll need to return it to the dealership, unless you decide to pursue an auto lease buyout.

Auto Loans with American Heritage

Here at American Heritage, we’re proud to offer a variety of auto loan and refinancing options for our members to take advantage of. Enjoy no payments for the first two months on a 63-month term loan with rates as low as 5.49% APR.* We’re also proud to offer a variety of member-discounted amenities for your vehicle, such as GAP insurance, Mechanical Repair Coverage, and discounts on auto insurance through Liberty Mutual Insurance presented by TruStage™ Insurance. With summer just about here, don’t delay in finding the perfect car for you and your family’s fun this season!

Ready to Hit the Road?

Whether you're buying new, exploring lease buyouts, or looking to refinance for lower payments, American Heritage is here to help you save, drive smarter, and protect your investment with auto loan products.