A vehicle's true cost of ownership includes more than just purchase price. It also consists of overlooked operating expenses such as repairs, insurance and fuel. If you are not careful, these costs can quickly exceed what had previously seemed like a reasonable budget.

Determine Your Price Range

Pre-qualifying for a vehicle loan will give you an indication of what you can comfortably afford.

Other Factors to Consider

• Depreciation—A deeply discounted vehicle may not look like such a deal if it has a low resale value. Some vehicles retain their value better than others.
• Insurance—Depending on where you live, insurance can add $100 or more a month to your transportation costs. Be sure to research potential insurance premiums before you choose a vehicle model. Keep in mind that some vehicle models with above-average safety records can actually lower insurance premiums. On the other hand, certain vehicle models (such as sports cars) can cost more to insure.

Check out the Ford Motor Company Insurance Services Program website, underwritten and administered by The Hartford. Get quotes online and find answers to your most frequently asked auto insurance questions.

Department of Motor Vehicles (DMV) Fees

DMV fees, such as vehicle registration, title and new plates can be as high as 2 percent of the vehicle's purchase price.

Sales Tax

Depending on the state in which you purchase your vehicle, you might pay sales tax of up to 8 percent of your vehicle's purchase price.

Fuel

To calculate your annual fuel cost, divide the total number of miles you plan to drive your vehicle (average is 15,000 miles per year) by average miles per gallon (found on the vehicle's window sticker). Multiply this number by gasoline's current price per gallon.

Maintenance

Regular maintenance (oil changes, tune-ups, tires, brakes, car washes) can increase your bottom line. If you purchase a used vehicle, it may require more maintenance, which can further increase your vehicle's overall cost. However, timely maintenance may save you large repair bills as your vehicle ages.

You can find a mechanic to assess a used vehicle before you purchase it on our Genuine Parts & Service website.

Contact third-party sources to compare vehicles' frequency of maintenance and repair.

Repairs

Keep in mind that if you choose a high-end model, the repairs may be more expensive. If the possibility of major repairs is a worry, you may want to consider purchasing an extended service plan.

If you are considering a Ford, Lincoln or Mercury vehicle, visit our Extended Service Plans website to find the plan that is right for you, get a price quote and purchase a Ford Extended Service Plan.