Buying your first car often feels like both an emotional and logistical milestone. People focus on the sticker price, but there are predictable ongoing costs that matter for budgeting: fuel, routine maintenance (oil changes, tires), insurance, registration, and periodic repairs. If you lease or finance, add a monthly payment; if you buy with cash, consider opportunity cost. A useful first step is to list recurring monthly costs vs one-time expenses and decide what portion of your budget you’re comfortable assigning to vehicle costs. Many drivers underestimate insurance and maintenance — especially as cars age — which can make an apparently inexpensive monthly payment feel tight when other costs arrive. This question zooms in on a basic definition you’ll run into when shopping for finance offers or comparing total ownership options. Keep the practical goal in mind: choose language that helps you describe what you’re actually paying for each month.