Ownership7 min read
Budgeting for the True Cost of Ownership
Look past the sticker price to fuel, insurance, service and depreciation over the years you'll keep the vehicle.
Autosavvy101 Editorial
The purchase price is only the beginning. Fuel, insurance, maintenance, repairs and depreciation all add up over time.
The Five Cost Areas
- Depreciation — often the largest single cost
- Fuel — varies by model and your driving
- Insurance — depends on vehicle, driver and cover
- Maintenance and repairs — grow with age
- Financing — interest if you borrow
Depreciation is often the largest single cost, especially in the first few years of a new vehicle's life.
A realistic ownership budget helps you compare vehicles fairly and avoid surprises after the purchase.
Estimate fuel and insurance for your situation rather than relying on averages. Two drivers can face very different costs for the same car.