Insurance-Auto-Loan

According to a recent Auto Club survey, the cost of fuel is among the most important items that can lead to an increase in vehicle operating costs.

Due to the higher than normal interest rates charged by bad credit lenders, the monthly payments of many of these types of vehicles put them at or over the limit of most budgets.
More expensive car insurance and lower fuel economy also adds to their cost.

AAA survey
Based on driving 15,000 miles per year, these are the average costs of operating a vehicle based on its size and type:
Small sedan – 43.3 cents per mile or $6,496 per year
Medium sedan – 56.2 cents per mile or $8,436 per year
Minivan – 62.0 cents per mile or $9,301 per year
Large sedan – 70.2 cents per mile or $10,530 per year
4WD SUV – 73.9 cents per mile or $11,085 per year

 If you’re involved in an accident where the car is declared a total loss, the insurance company will typically pay its retail value (possibly less any deductible) at the time of the accident.

The only problem with a total loss accident is that if this situation occurs in the first half of traditional auto loans or even further along where small down payments are involved, the auto insurance settlement could be thousands less that the loan payoff.

Last year, the National Highway Traffic Safety Association (NHTSA) issued a Comparison of Insurance Costs report, covering 2008 to 2010 models.Since the premium for auto insurance can add significantly to monthly car expenses, finding a car that is less expensive to insure can help lower the overall costs of a bad credit auto loan. The report lists the average collision claims costs of different makes and models, making it an especially valuable tool for bad credit buyers on a limited budget.

If you are about to purchase a new car, the payment may concern you. There is a method you can use to calculate your car payment if you know some of the terms. Calculating a payment beforehand lets you know if the payment will fit into your budget. You can also determine if you need a larger down payment to reduce the loan amount, which helps decrease your monthly payment.