Don't forget, gas burned per mile, repairs, insurance cost and depreciation.
At $15,500, the manufacturer’s suggested retail price for the two-door Fiat hatchback is almost $6,500 cheaper than the four-door Camry. But when you include other costs, including insurance, maintenance and repair, over a five-year period the Fiat ends up costing more, reports Jennifer Waters.
There is a new very convenient way to balance out all the costs of car ownership beyond the purchase price . A tool at the web site Edmunds.com, called the True Cost to Own, does the math for you on extra costs — including depreciation, interest on financing, taxes and fees, etc.
“People look only at one dimension, the sale price,” said Carroll Lachni of Edmunds.com,as quoted by Waters. “If your argument is let’s buy the Fiat because it’s going to be cheaper, the [True Cost to Own] blows your argument out of the water.”
I think everyone takes fuel economy into consideration. Depreciation is only important if you trade cars often. If you keep them for 10+ years it is mostly irrelevant. If you trade up every 2-3 years you are probably better off leasing anyway. Despite the Edmund's tool it is not that easy to predict from the getgo how much repairs will cost for a particular vehicle. If everyone took the time to learn how to do some basic maintenance it would go a long way towards lowering their maintenance and repair costs.
ReplyDeleteLife is not all about 'total cost of ownership.' If it was, my wife and I may not have had our two kids, whose private school primary and secondary education cost was a small fortune.
ReplyDeleteMe, I look forward to the arrival of the Fiat Abarth convertible later this year/early next year: fun, stylish, quick, easy on gas, easy to park.
Sure, it is more expensive to own than a Camry. But, it is much better looking and a lot more fun.
Ciao!
As an insurance agent, I frequently see people buy "cheap" cars only to find out a different model would save them hundreds on auto insurance. It is better to call your agent before you buy.
ReplyDeleteAt the time people want to buy a cheap and good mileage car and there is hot market in India ,Every car maker company geared up for launching cheap car with impressive mileage.like Chevrolet Captiva and Ford Figo.
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