Monthly cost worksheet
| Cost | How to estimate it |
|---|---|
| Loan payment | From your loan offer. Zero if the car is paid off or given to you. |
| Insurance | Get quotes for the exact car before buying, then divide by 12. |
| Gas | Weekly miles ÷ miles per gallon × price per gallon × 4.3 |
| Maintenance and repairs | Set aside a monthly amount. Older cars need more. |
| Registration, inspection and taxes | Yearly total from your DMV ÷ 12 |
| Parking and tolls | Your typical monthly amount |
Costs people forget
- Tires and brakes, which often come due at the same time
- Batteries, usually every few years
- Personal property tax on vehicles in some states
- Higher insurance if you have a young driver or recent ticket
- Loss of value over time (depreciation)
Ways to lower the cost
- Choose a reliable, fuel-efficient model with low insurance costs
- Compare insurance every year (see low-income insurance options)
- Keep up with basic care (see maintenance on a budget)
- Use fair financing, not buy here pay here or title loans
- Use gas and repair help when money is tight
Is a car the right choice right now?
If the monthly total is more than you can afford, transit, carpooling or transportation assistance may work better while you build savings. A matched savings account (IDA) can help you save for a car faster.
Frequently asked questions
Why do car programs ask if I can afford insurance?
Because a car you cannot insure or maintain will not help you for long. Programs want the car to help you keep a job and stay on the road.
What is the cheapest kind of car to own?
Usually a reliable, fuel-efficient compact or midsize car with a good repair history and low insurance costs.
Related help
- Buy a Used Car on a Budget
- Car Maintenance on a Budget
- Low-Income Car Insurance
- Affordable Cars & Loans
Find help in your state
- California
- Texas
- Florida
- New York
- Pennsylvania
- Ohio
- Georgia
- North Carolina
- Michigan
- Illinois
- All 50 states + DC
Reviewed November 2026. This page was researched using official government and program sources. Programs change often, so please confirm details with each program before applying. How we research.