How To Calculate Vehicle Cost of Ownership in Chapmanville, WV

How Do You Calculate The Cost of Ownership?

You might be surprised to learn that owning a car costs far more than your monthly car payment. Before you purchase your next vehicle, take a moment to read over these tips from the Thornhill Mitsubishi finance department to accurately calculate how much it would cost to own a vehicle.

Common Expenses For Car Ownership

Consider calculating all the usual expenses associated with owning your next vehicle to ensure you can afford the monthly payments and yearly budget. Once you have a comprehensive understanding of ownership costs, you can determine if you can afford luxurious features such as manual rear-window sunshades or a heated steering wheel.

So, if you’re planning to own a car, then let's break down the real cost. In addition to the vehicle's price, consider financing, insurance, fuel, registration, and maintenance. Keep reading for an in-depth analysis to make an informed decision.

Calculating Monthly Car Payments

Considering monthly car payments is essential when determining a vehicle's affordability. According to Experian's latest report (August 2023), the average new car payment is $725. Keep in mind that your car might not come with such a hefty price tag. Opting for a more cost-effective choice, such as a Mitsubishi Mirage, could lead to significant savings.

When considering the cost of a car, you should not only factor in the purchase price, but also the financing costs. Your monthly car payment includes the cost of financing, offering you an opportunity to save money.

Let's not overlook the impact of interest on your loan expenses. Take, for example, a $30,000 vehicle purchase with a 60-month term and a 6% interest rate, which adds up to an additional $4,799.04, or $179 a month. By seeking out the best possible interest rate for your car loan, you could potentially reduce your monthly payments significantly.

The Cost of Car Insurance

It would be a major hassle if you had to keep making car payments for a car you no longer have. Luckily, there's car insurance with benefits like gap insurance that can cover the remaining balance on your car if, for some reason, you can no longer drive your vehicle. The price of insurance varies depending on factors such as your driving record, vehicle value, chosen coverage, and other considerations. Gathering quotes from reliable insurance companies to factor insurance costs into your budget is a good idea.

The Amount of Fuel You’ll Buy

Gas prices can be unpredictable, but it's estimated that most people pay around 18 cents per mile for fuel. The average American driving about 15,000 miles a year adds up to roughly $2,700 annually or $225 a month. To save on gas, consider using gas price apps to track costs at nearby stations. Just be mindful not to drive extra miles to reach a lower-priced station.

Registration and Fees

Discover how taxes and fees on your vehicle are influenced by the car's make and model, as well as the state and city where it's registered. Find out the exact amount you'll pay for fees and registration for your vehicle. If you need a quick estimate, the average car owner pays around $675 a year in taxes and fees.

Cost of Maintaining Your Vehicle

Maintaining your car in top-notch condition comes with a price tag. According to Bankrate, the typical American allocates between $370 to $786 annually for maintenance. This means setting aside $31 to $66 each month for upkeep. Keep your car running smoothly without breaking the bank.

Visit Thornhill Mitsubishi To Purchase An Affordable Car

Use this valuable information to accurately calculate the total cost of your desired vehicle. This will allow you to make an informed decision on which vehicles align with your budget. Come and visit us at Thornhill Mitsubishi to discover your perfect vehicle.