One of the things that always concerns me is when people talk about their car as an investment.
99% of the time, cars are not an investment but an expense providing a mode of transportation or a passion or both.
To figure the true cost of owning a vehicle, a few figures have to be entered into the formula.
- The initial cost of the vehicle
- Maintenance costs
- Repair costs
- Insurance cost
- Fuel expense
- Less the resale value of the vehicle.
It is not hard to figure the initial cost of the vehicle or the insurance cost, if you check with your insurance agent before you buy the vehicle. Insurance costs do vary from vehicle to vehicle so check first.
Look in Consumer Report for the amount of depreciation and dependability of a vehicle. Also check with your favorite independent repair facility to get their opinion on the different vehicles you are thinking of buying.
Posted on a new vehicle is the EPA rating of fuel mileage so you can compare that figure with others that you are looking at. Remember that you will not get the posted mileage but it is a good comparison.
A little homework before you buy will make a big difference in the true cost of owning a vehicle