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Edmunds’ True Cost To Own Tool Spells Out Vehicle Cost Of Ownership

How much does a new car cost?

It may seem like that question would be an easy one to answer. After all, the price is listed right there on the window, and you can even look it up online without getting up from your seat. However, a distinction can be made between the price of a new vehicle and the total cost of ownership of that vehicle.

Just because one vehicle has a lower purchase price than a competing model does not necessarily mean that it will save you money. In fact, sometimes the very reason why one car has a higher price than another is because it incorporates features such as hybrid technology or better reliability that make it cheaper to own overall. Though the purchase price is still a major factor, the total cost of ownership also includes factors such as:

  • Fuel costs. Paying more for a vehicle might be worthwhile if it gives you better fuel economy.
  • Insurance. Larger or sportier vehicles may come with higher insurance premiums.
  • Maintenance and repairs. A more reliable model can have a lower cost of ownership because you won’t be spending money on costly repairs.
  • Depreciation. If a vehicle holds its value better, you can get more money for it when you eventually trade it in for a new one.

So how can you know what the total cost of ownership will be for a vehicle before you buy it? Edmunds.com has a handy True Cost to Own calculator available that can help you find out. It utilizes data on all of the major ownership costs — including those listed above — for each vehicle on the market, and calculates what the average driver’s total cost of ownership would be over the next five years.

Though only an estimate, it does allow you to compare different models (or different versions of the same model) to see which one would likely cost you less to own.

To learn more about the different models available and find the one that would best meet your needs, contact us today at NYE Automotive Group.

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