We often think the cost of the car is the price we pay the dealership to buy it. But, the truth is that the cost is far more than the price tag of the vehicle.
There are on-going costs associated with car ownership that should be considered. It’s also been said that once a car is driven off the lot it has already depreciated in value.
So what is the real cost of owning car?
There are different types of costs to consider which are carrying costs and ownership costs. Carrying costs relate to the purchase of the car while ownership costs relates to maintenance and many other variables such as fuel costs.
Consider the following:
- Financing (cost of vehicle, interests, taxes)
- Insurance (auto, GAP, extended warranties)
- Registrations (DMV fees)
- Maintenance (tune ups, tire change, wear and tear)
- Parking (and parking tickets)
- Moving violation tickets
Additional reading sources:
Consumer Reports’ What that car really costs to own – Knowing a vehicle’s cost over time can save you thousands in the long haul