The True Cost of Car Ownership

THE TRUE COST OF CAR OWNERSHIP We all know that the cost of a car doesn't end at its purchase price; However, some may not realize exactiy How much that is. The next time you're shopping for a car, consider these additional costs. SIX MOST COSTLY FACTORS In addition to shopping for a good deal, consumers should consider how Interest much the car will cost them to own. This is tied directly to the price of your vehicle. CAS Insurance Maintenance & repair While most repairs are covered by factory warranty, they still add up Depreciation Fuel costs Sales tax The amount you spend on gas could vary greatly depending on car efficiency Your age, location and driving record can all impact this cost significantly. Some vehicles This cost can also depreciate faster than vary greatly, depending on where you live. others due to oversupply and limited customer appeal. WHERE DOES THE MONEY GO? A break down of ownership costs over five years: 46% Depreciation 3% Tax 26% Fuel 4% Maintenance & repair WATCH OUT: CARS WITH LOW PRICE TAGS MAY HAVE HIGH INSURANCE COSTS. 10% Insurance 12% Interest AVERAGE COSTS PER YEAR While operating costs like fuel, insurance, and maintenance and repair increase over time, carrying costs, like depreciation, interest and tax, decrease. $16.000 $14.000 Carrying costs $12.000 |Operating cost $10.000 |Average cost per year $8.000 $6.000 $4.000 $2.000 1 2 3 4 5 6 OWNERSHIP COSTS PER YEAR SMALL SEDAN $4,293 MEDIUM SEDAN $5,771 LARGE SEDAN $7,937 4WD SUV $7,640 MINIVAN $6,301 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 OPERATING COSTS PER MILE I(In cents) SMALL SEDAN 16.28 cents MEDIUM SEDAN 20.06 cents LARGE SEDAN 22.58 cents 4WD SUV 24.80 cents MINIVAN 21.35 cents 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AAA AVERAGE COSTS PER YEAR $14,000 $12,000- Large Sedan $10,000- 4WD SUV "IF YOU COMMUTE BY CAR, EXPECT TO PAY ABOUT $58 IN Minivan $8,000- Medium Sedan VEHICLE EXPENSES $6,000- PER 100 MILES DRIVEN. Small Sedan $4,000- 20,000 10,000 total miles 15,000 total miles total miles $2,000- MAINTAINING YOUR VEHICLE Driving costs are influenced by how well your car runs. Here are some things to keep an eye on: AVERAGE AGE OF LIGHT VEHICLES 2005: 9.5 years 2000: 8,9 years 1995: 8,4 years Air filter Belts 120 100 140 80 160 60 180 40 200 20 220 02478981 2010: 10,6 years 2011: 10,8 years Tires People are keeping their cars for longer, The average age of light vehicles has increased to 10,8 years Battery Fluids; Engine oil, Coolant, brake fluid, transmission fluid, power steering fluid, gasoline .1.1.1.1