How much does your car really cost? With gas and maintenance, it’s much more than the sticker price. Many go for the lowest sticker price possible, but according to Safe Car, the cost of ownership might actually be higher than the lower priced car.
So what do you need to take in to account when purchasing a car for specific makes and models? The annual ownership cost of a car in 2012 was $8,956. The interest of the cost of ownership for five years is 11%. Buying with a bank overdraft is the cheapest way because you can often get a discount on the retail price if you offer cash.
Annual taxes and fees add up to $1,058. Once you deduct the sales tax on a new vehicle the resale value drops very fast in the first three years. The national average for sales tax is 5% and the cost to owners to maintain is about the same.
Used cars are worth more now than ever before. A depreciation drop of 4.9% now means that used cars hold their value better than they used to. When you buy second hand, always check the makes and models to see when your loss in value for your choices slows down.
There’s more! See in the infographic below.