Car Purchase, Finance Charges And Loan Payments
The purchase cost of the car including any finance charges and loan payments will almost defnitely comprise the bulk of your expenditures for owning a car. A study by Comercia Bank puts the average cost of a new vehicle at $26,300. That can take quite a bite out of your yearly budget. If you factor in a downpayment / trade in of $5000, an average sales tax of 7 percent and an interest rate of 6.58 percent, you are looking at $549.65 per month for 4 years.

To calculate the cost of your purchase, try this free auto payment calculator.

Parking
If you live in a city, you will need to take into consideration the cost of parking your car. While it varies between cities, it can be expensive. For example, in New York City, just one day of parking can cost $35. Monthly rates when available give you a better deal, so it's wise to shop around before deciding. Your costs will vary depending on how frequently you need to drive and park and the city you live in.

Inspection, Registration and Licensing Fees
Car registration fees vary by state and county, but can cost at least $40, and often more. To get a title, again it varies, but $30 is a reasonable amount to expect. You must also include your renewal fees for your drivers license.

To find information for the state you live in, click here.

Gas
As of this writing in 2010, the average price of gas over the U.S. is $2.69. With the average vehicle getting between 20 and 25 miles per gallon, it stands to reason that most Americans spend upwards of $1500 dollars per year for gasoline.

To see the average cost of gas in your area, click here.

Repair and Maintenance
While there is no good estimate for car repair and maintenance, you can be sure that it can be costly. Costs vary depending on the model and make of the car, the problem needing to be fixed and the place you have the car repaired. A simple fix might only cost a couple of hundred dollars while a more serious issue could run into the thousands. Either way, you must take into consideration that most cars will require some sort of maintenance at the very least, such as oil changes and tune-ups.

Car Insurance
Along with purchasing a car, you will need to buy car insurance. The cost varies depending on which state you live, your driving record, the type of car you drive and your age, among other things. It pays to shop around, as you could save yourself thousands of dollars per year! You will need to determine what kind of insurance is required by your state and the decide exactly which type of insurance you really need.

Click here to learn more about how to choose the right car insurance.

Owning a car can cost you quite a bit. While extremely variable in cost, owning a car can easily cost you $20,000 per year. Be sure to factor in all of the charges, fees and purchases listed above to get a better idea of the average annual cost of a car.