The Cost of Car Ownership. Annual Cost to Own a Car Source: The following.

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Presentation transcript:

The Cost of Car Ownership

Annual Cost to Own a Car Source: The following slides will break down some of the hidden costs of owning a car.

Fuel Average annual cost $1, or 11.2 cents per mile This number varies from year to year as gas prices rise and fall Source: / Click here to find out what your current or future car’s average MPG is.here

Finance Charge Finance charges vary per year depending on the interest rate and term of the loan (i.e. 48 months vs. 72 months) Source: / Click here to see how much interest you could pay on your car loan.here

Time Costs You Don’t be fooled by an advertised low monthly payment. If the length of the loan is long and the interest rate high, you may be paying more than you have to.

20% Rule Don’t spend more than 20% of your monthly take- home pay on a car payment.

Auto Loan Affordability Calculator Click here to see how much you can afford to spend on a car payment per month.here

Research Loans Compare the dealer’s financing with the loan you can get through your financial institution or other lenders. If you go to your financial institution before you start your car search, you will have a better idea of how much you can borrow and, thus, what cars you can afford. Furthermore, you may be able to get a better interest rate with your financial institution than a dealer. Even though dealers often offer incentives, they do not always have the best financing. Source:

Depreciation Source:

Insurance Average is $1,115 per year Cost depends on type of car, age of car, driving history, state you live in, etc. Source: /

Maintenance Average cost per year is $ Maintenance includes things like oil changes, tires, brakes, engine repair, etc. Source: /

Registration The cost varies with newer vehicles costing more per year than older ones

Loans vs. Lease Running Time: 5:49

On Your Own