What Is The Annual Cost of Vehicle Ownership?
Car ownership can be a double-edged sword; it's necessary to have a vehicle to get to work, but it can be expensive. Sometimes unexpectedly expensive. We see consumers each month who own vehicles that need major repairs that exceed the value of the vehicle, and they still owe money on the vehicle. This is tough, and it really narrows your options for a fix. We hope to give some basic advice & stats about budgeting for a vehicle purchase.
Most people just look at the price of the car, and perhaps insurance costs. The other costs to car ownership are; fuel, maintenance, tires, repairs, license/registration/taxes (all vary based on State of residence), depreciation and loan interest.
AAA performed a recent study and found that on average to own and operate a new vehicle last year in 2018 the annual cost was $8,849.00. A breakdown per types of vehicles are as follows:
Small Sedan: $6,777
Medium Sedan: $8,866
Medium SUV: $9,697
Large Sedan: $9,804
Pickup Truck: $10,215 - this is not a diesel pickup price they are more expensive to own and operate.
Whether you buy a vehicle new or used, looking at the full costs before the purchase and then keeping it maintained is the KEY to longevity and getting the most value out of the vehicle, in terms of resale, or if you keep it the safety and reliability for yourself and your family. Happy Motoring!
All About Automotive
139 NW 2nd Street
Gresham, OR 97030