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By Selena Maranjian (TMF Selena)
May 6, 2002

Q. If I'm trying to figure out how much a car will cost me over its life, what should I take into account?

A. This is a great exercise to go through, as it can help in your budgeting. Below are the main factors to consider. Estimate how much each category will cost annually, add up all the values, and then multiply the sum by the number of years that you expect to own the car. (To make it more accurate, tweak the numbers to reflect the age of your car each year. Insurance costs are likely to drop somewhat as the car ages, for example, while repair expenses will probably increase.)

• Purchase price
• Maintenance
• Repairs
• Gas (or other fuel)
• Insurance
• Taxes
• Registration and plate fees
• Accessories (fuzzy dice, photon torpedoes, etc.)

These considerations are particularly important if you're thinking of buying a pricey car that you can just barely afford. You may be able to swing the purchase, but will you be able to afford other steep costs that might come along with the car, such as higher insurance premiums and property taxes?

Know that some trim models of the same car get placed into higher-premium "sports car" categories by insurance companies, and the cost difference to insure them can really deflate your wallet. To avoid unpleasant surprises, call your insurance company and get an estimate on insurance premiums before you finalize a car purchase. If a car does seem to cost a lot more to insure than you expected, ask the insurance company why. They may help you identify other models with more reasonable premiums.

For much more on the ins and outs of the car-buying process, check out the Fool's How to Buy a Car area and ask questions on our Buying and Maintaining a Car discussion board. (You might also read a recent Q&A we ran on the topic of car pricing.)

If you have any thoughts or opinions on this topic, share it with others on our discussion board for Ask the Fool.

This question and answer is adapted from The Motley Fool Money Guide: Answers to Your Questions About Saving, Spending and Investing. For answers to this and 499 other common money questions, check it out -- it's a handy resource.