Whether you are buying a new car or a used car, it’s important to consider more than just the sticker price. Our infographic below shows how to calculate depreciation, fuel costs and more to determine the true cost of car ownership.
Look beyond the sticker price when determining how much it costs to own a car.
Car ownership costs – to determine the true cost of ownership, add these to sticker price:
License fees
Registration fees
Sales and other taxes
Depreciation costs
Insurance costs
Finance charges
Maintenance and repairs
Fuel
Ownership costs at purchase:
$200-600 in registration fees
5% average sales tax
Average annual cost of ownership (Based on 5-year ownership):
Average gas bill per year is $2,175.
Average tire costs per year is $150.
Average maintenance bill per year is $750.
Average insurance bill per year is $1,510.
Total annual cost is $3,905.
$1,322 is saved on average for an 8-year-old vehicle. This is the amount you’ll save in depreciation—or the change in a car’s value—and finance charges if you keep your car 8 years instead of 5.
Car operating costs – here’s where your dollars go, based on the age of your vehicle:
Depreciation – 48%
Fuel – 24%
Loan interest – 11%
Insurance – 10%
Maintenance and repair – 4%
Tax – 4%
Depreciation costs.
Depreciation is the largest cost of owning a car. The average car depreciation over 5 years is 65%.
SUV vs. Truck.
Even cars that cost the same can have significantly different running costs. Take this real-life example.
SUV:
Sticker price = $28,295
Maintenance for 5 years = $3,726
Repairs for 5 years = $1,484
Total running costs of owning an SUV would be $33,505.
Truck:
Sticker price = $28,745
Maintenance for 5 years = $5,574
Repairs for 5 years = $915
Total running costs of owning a truck would be $35,234.
Calculate and save. By calculating the differing costs of ownership, you may decide that a vehicle with a lower sticker price will ultimately cost you more in the long run.
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