Gaining control over your finances and saving money is on everyone’s mind these days. Now is a good time to evaluate the true cost of owning a vehicle, which will help you make better decisions when buying a car or truck. Most families need at least one vehicle, and many require a second or third to make their schedule work. Buying an affordable car or truck is easier when you understand how to figure out the overall price tag.
There are five major costs to consider in this calculation:
* Depreciation - as your vehicle gets older, the resale value will decrease.
* Fuel - perhaps the most important consideration when buying a new car, gas mileage has an enormous effect on the overall cost of owning a vehicle.
* Repairs and maintenance - this amount depends heavily on the age and quality of the car or truck, but every vehicle will need a certain amount of repairs and maintenance.
* Insurance - this cost also depends on the age, make and model of the vehicle, as well as your driving record.
* State fees - a small amount, but still unavoidable since every vehicle and driver will need to be registered and licensed.
How this Calculation Helps
Spend some time evaluating the true costs as outlined above. You can then use those figures to accurately compare different makes and models, or to help you decide whether a new or used vehicle is best.
Always purchase a vehicle that will fit into your budget as well as offering reliability, safety and an enjoyable drive. Whether you are getting your first car or your fifteenth, figuring out the true cost of owning a vehicle is a helpful way to make the best decision.