cost of ownership

The Vehicle Cost of Ownership includes all the expenses you may have when you buy a vehicle. It includes: Car Payment, Fuel costs, Maintenance and Repairs, Depreciation, Interest on the loan, Insurance, Licensing and Registration Taxes and Fees.

You have to add these expenses to the Car price to calculate the real cost of the vehicle.

The amount of money you pay for fuel depends on the gas price and the miles per gallon you get with your car. 

The maintenance and repair costs depend on the vehicle and on the age of it. If you have an old vehicle the numbers can easily double.

 If you take care of it and go for all the regular maintenance appointments the numbers can be lower but if you live in a place where there is extreme weather they could increase.

The interest of the loan depends on the bank, your actual credit, the length of your loan and the downpayment you made.

The insurance rate is affected by factors like age, annual mileage, location, insurance history, your credit score, years of driving experience, claims history, coverage level, vehicle, vehicle ownership status (owned, leased or financed), discounts available and the Insurance Company.

Licence and Registration fees and taxes depend on the State.

Due to regular use and aging the value of the vehicle decreases and it is what we call depreciation. The mileage is something that affects the value too. 

Your car's value can decrease around 20% and 30% by the end of the first year.

From years two to six it would be between 15% and 18% per year, so in five years your car can lose up to 60% of its initial value.

So, as you can see, the cost of the vehicle is not only its price, there are so many expenses that come with it.