When buying a vehicle you need to take a lot into consideration. What car do you want/need? What options/features do you prefer? Will you pay cash or finance? It’s important to consider all of this but cost is another factor.Cost is not just limited to the cost of the vehicle. Another cost that is on everyone’s mind right now is the fuel costs. People desire fuel efficient cars so they pay less for gas. You have maintenance/repair costs. If you choose to finance you will have the cost of interest. Uncle Sam has to get his money so there is sales tax. You have auto insurance costs too. The biggest cost of all is depreciation.
According to Consumer Reports here is the cost of ownership breaks down over 5 years.
Tax = 3%
Maint. & Repair = 4%
Insurance = 10%
Interest = 12%
Fuel = 26%
Depreciation = 46%
Edmunds.com has a true cost to own tool on their website. Check it out…it’s pretty cool!
