Annual cost of car ownership as reported by AAA: $9,369

[Kaido]

Dang, I forgot to add in town tax: $400 a year 🙁

That brings my first-year total up to $8636 and my second & third year lease totals up to $7636 :Q

 

[halik]

Not my car,
buy used and DIY and you're all set.

 

[Gillbot]

Originally posted by: halik
Not my car,
buy used and DIY and you're all set.

Used car purchases and lower initial cost will reduce that number greatly. So will purchasing without financing.

 

[magomago]

lets see
broken light assembly (grr someone hit me and left no note): 250
2 oil changes: 120 (not doing that again...DIY from now on)
cost to DIY diff/tranny oil including first time expenses 80
liscense renew ~20
registration ~120
insurance ~700
leaky cam gasket+ cas o ring cover 120
gas so far this year: ~500
thus far 1910

things to do for the future:
new clutch resoivior (mine is leaking + over rusted) + slave + cables: quoted at 300 for everything
suspension ~1.3k
tires ~ 450

What do i anticipate will be done by the end of the summer? The clutch setup + tires. Suspension will be something I tackle next year...will probably get some sway bars in there as well because although its a DD for me, i do enjoy, on occaison (~10% of the time) to whip it through some nice curvy roads.

I would think that by the end of the year, I will have spent more on the car than I purchased the car for

the goal is to get the car into complete maintenance mode where I'm not spending to prevent failures or existing problems....ideally, I'd want to spend $$ on the following: replace belts/gaskets as needed , change fluids on specified intervals, replace cabin/maf air filter. If I can get it to that point, then I'm a happy camper.

But yeah...10k may sound about right if you want to ensure that its being kept in tip top condition. Of course, the idea is that you make your money back because the car takes you to work

 

[dud]

What scares me about this AAA report is that, if true, the average person is spending a HUGE percentage of their income just for the privledge of driving. If you make $40K a year (and a lot of people do not) then 25% is spent just on your car.

 

[PingSpike]

I don't know...I just added up all the basic stuff, oil, gas, insurance, registration, inspection with a $250/mo car payment (mine is lower then that since I had a large down payment, but I don't think thats really fair for this calculation) and I ended up with $5500-6000. If you factored in depreciation I could see it being close. And I drive a pretty cheap car, if you own something more fancy then a econobox (most people do) then it seems quite believable. Sad, but not a surprise...cars are a huge expense. However, unless I lived in one of the larger cities in the US (which would have higher other expenses that partially eat up the savings) I'd pretty much have to own one so its a little bit like complaining that food is an unnecessary expense.

Originally posted by: redgtxdi
And with current (and upcoming) incentives growing ever better, new may clearly be the better way to go if you're buying one of the top selling middle-income type vehicles today.

Especially since everyone always recommends a Honda or a Toyota...which if most newspaper and craigslist ads are to be believed, actually appreciate in value after they are driven off the lot.

 

[BlahBlahYouToo]

Originally posted by: vi edit
The $4000 estimate sounds a lot more accurate to me.

My wife's Malibu loan is less than $200 a month. That's $2400 a year. She drives about 12,000 miles a year at an average of about 25MPG. There's another $1300. Plates run $78 a year. Insurance is about $400 a year. Throw in 3 oil changes and a rotation for another $100.

That's around $4300. No way is it losing another 5 grand a year in depreciation and out of pocket repairs.

bolded for you to see the light.
😉 😉

 

[vi edit]

Originally posted by: BlahBlahYouToo

Originally posted by: vi edit
The $4000 estimate sounds a lot more accurate to me.

My wife's Malibu loan is less than $200 a month. That's $2400 a year. She drives about 12,000 miles a year at an average of about 25MPG. There's another $1300. Plates run $78 a year. Insurance is about $400 a year. Throw in 3 oil changes and a rotation for another $100.

That's around $4300. No way is it losing another 5 grand a year in depreciation and out of pocket repairs.

bolded for you to see the light.
😉 😉

I figured some smart ass would come in and say something.

We paid $15,000 for it when it was less than a year old and only had 2,000 miles on it (program car). Somebody already took the initial $8,000 hit for us.

Even if it loses $10,000 in value over 5 years from purchase, that's still only $2,000 a year. A bulk of cars lose 30%-50% of their value within the first three years. After that the depreciation really slows down. Once it drops below $10,000 in value (which is what it's at now) it's going to take several years to lose that next $5,000.

 

[halik]

Originally posted by: vi edit

Originally posted by: BlahBlahYouToo

Originally posted by: vi edit
The $4000 estimate sounds a lot more accurate to me.

My wife's Malibu loan is less than $200 a month. That's $2400 a year. She drives about 12,000 miles a year at an average of about 25MPG. There's another $1300. Plates run $78 a year. Insurance is about $400 a year. Throw in 3 oil changes and a rotation for another $100.

That's around $4300. No way is it losing another 5 grand a year in depreciation and out of pocket repairs.

bolded for you to see the light.
😉 😉

I figured some smart ass would come in and say something.

We paid $15,000 for it when it was less than a year old and only had 2,000 miles on it (program car). Somebody already took the initial $8,000 hit for us.

Even if it loses $10,000 in value over 5 years from purchase, that's still only $2,000 a year. A bulk of cars lose 30%-50% of their value within the first three years. After that the depreciation really slows down. Once it drops below $10,000 in value (which is what it's at now) it's going to take several years to lose that next $5,000.

American "fleet" cars don't hit that slower depreciation rate under 10K, they keep on dropping like flies. 2001 Tauruses are worth 2-3K tops.

 

[vi edit]

Originally posted by: thomsbrain
For the Accord, I'd estimate I spend per year:

$4250 on gas
$800 on insurance
$1200 on maintenance
$400 on tires
$3000 on depreciation (conservative)
$100 misc.
$300 registration

That's over $10,000 right there, and it wouldn't surprise me if the true figure is significantly higher. On a brand new car, it would be way more.

Damn dude...you driving like 35,000+ miles a year?

 

[Gillbot]

Originally posted by: dud
What scares me about this AAA report is that, if true, the average person is spending a HUGE percentage of their income just for the privledge of driving. If you make $40K a year (and a lot of people do not) then 25% is spent just on your car.

Not everyone will purchase a car that would drive up the initial cost though.

Originally posted by: vi edit

Originally posted by: BlahBlahYouToo

Originally posted by: vi edit
The $4000 estimate sounds a lot more accurate to me.

My wife's Malibu loan is less than $200 a month. That's $2400 a year. She drives about 12,000 miles a year at an average of about 25MPG. There's another $1300. Plates run $78 a year. Insurance is about $400 a year. Throw in 3 oil changes and a rotation for another $100.

That's around $4300. No way is it losing another 5 grand a year in depreciation and out of pocket repairs.

bolded for you to see the light.
😉 😉

I figured some smart ass would come in and say something.

We paid $15,000 for it when it was less than a year old and only had 2,000 miles on it (program car). Somebody already took the initial $8,000 hit for us.

Even if it loses $10,000 in value over 5 years from purchase, that's still only $2,000 a year. A bulk of cars lose 30%-50% of their value within the first three years. After that the depreciation really slows down. Once it drops below $10,000 in value (which is what it's at now) it's going to take several years to lose that next $5,000.

Your flaw is that you are assuming all cars lose value at an equal rate. What about those who purchase a new Hummer or other overpriced SUV. Many of those lose value at an alarming rate, primarily when purchased new from the dealer.

 

[vi edit]

Originally posted by: Gillbot

Your flaw is that you are assuming all cars lose value at an equal rate. What about those who purchase a new Hummer or other overpriced SUV. Many of those lose value at an alarming rate, primarily when purchased new from the dealer.

It's not a flaw, I'm just not simply concerned about it because I don't own a vehicle like that(cost or model). There's also the simple difference between % and absolute dollars.

When a $20,000 car loses 50% in three years it's only $10,000. A $45,000 Suburban or Hummer losing 50% is is over $20,000. Same could be said for full size German luxury boats (BMW 7 series, Audi A8's, ect) that go from being over $70,000 to almost $30,000 seemingly instantly.

Buy those new, and dump them in three years and your cost of ownership is easily well and above the annual costs stated in the article.

Buy those same cars used and the actual dollars "lost" per year is smaller. % wise, it may be the same, but dollar wise it will be less.

 

[Gillbot]

Originally posted by: vi edit

Originally posted by: Gillbot

Your flaw is that you are assuming all cars lose value at an equal rate. What about those who purchase a new Hummer or other overpriced SUV. Many of those lose value at an alarming rate, primarily when purchased new from the dealer.

It's not a flaw, I'm just not simply concerned about it because I don't own a vehicle like that(cost or model). There's also the simple difference between % and absolute dollars.

When a $20,000 car loses 50% in three years it's only $10,000. A $45,000 Suburban or Hummer losing 50% is is over $20,000. Same could be said for full size German luxury boats (BMW 7 series, Audi A8's, ect) that go from being over $70,000 to almost $30,000 seemingly instantly.

Buy those new, and dump them in three years and your cost of ownership is easily well and above the annual costs stated in the article.

Buy those same cars used and the actual dollars "lost" per year is smaller. % wise, it may be the same, but dollar wise it will be less.

You appear to be concerned because you are arguing the fact that your car is only ~$4k and implying that any estimate higher is inaccurate.

I was merely pointing out that there are many variables in this equation and the OP's article can in fact be accurate, but it can vary person to person GREATLY. I can see it being an accurate running average though as many people buy new, drive the car for a few years then trade it in for another new. When you compound the loss in value and negative equity, that number can get quite high.

 

[vi edit]

Originally posted by: Gillbot

You appear to be concerned because you are arguing the fact that your car is only ~$4k and implying that any estimate higher is inaccurate.

I was merely pointing out that there are many variables in this equation and the OP's article can in fact be accurate, but it can vary person to person GREATLY. I can see it being an accurate running average though as many people buy new, drive the car for a few years then trade it in for another new. When you compound the loss in value and negative equity, that number can get quite high.

My intent wasn't even to argue at all. It was simply a response to the OP's question of:

"Do you agree or disagree? If you do not agree then please chime in with your perspective. My estimate, based upon owning three (3) vehicles and owning them 10 years each is closer to $4K each. "

The whole depreciation thing is really just kind of a joke when factoring in "cost of ownership" IMHO. If I paid $15,000 for a car, then I only paid $15,000 for a car.

It's not like I have to pay MORE than that to keep it or get rid of it. It doesn't cost me anything per month or day to day like a hard cost (loan, repairs, gas, ect). If I simply stopped using the car, gave it away, drove it off a cliff, ect then it has zero impact on my TCO. The car simply cost me $XX,XXX dollars to buy + insurance, gas and upkeep.

It's a double dip statistic that makes articles like these good to read for shock value.

 

[ElFenix]

$300 payments
$100 insurance
$50 storage unit so i could park the car in the garage
$160 gas
$10 oil
other maintenance but it's not quite predictable
$620 a month in payments due solely to my car
$7440 a year for those, plus registeration stuff which is cheap in texas. call it $7500.

pre tax it's even more.

 

[Jumpem]

Originally posted by: vi edit
Buy those new, and dump them in three years and your cost of ownership is easily well and above the annual costs stated in the article.

This is what I do. but in that three years my car will have 100k on it.

 

[Kaido]

Originally posted by: vi edit
Buy those new, and dump them in three years and your cost of ownership is easily well and above the annual costs stated in the article.

I just heard about this system - a guy at my dad's work does this. You intially save up whatever the cost of the car is (say $20k) and keep it for three years (or 5 or 10), but keep paying monthly payments into your bank account (say $200 a month), so when you trade it in and lose $5k thanks to depreciation, you have enough to cover it in cash. So the end result is similar to leasing, but you get unlimited mileage and can do whatever mods you want to the car. And you never have to spend $15/20/25k/whatever to buy a car again, just the first time and then a lifetime monthly payment.

Pretty cool idea. Now I just need $20k...

 

[halik]

Originally posted by: Kaido

Originally posted by: vi edit
Buy those new, and dump them in three years and your cost of ownership is easily well and above the annual costs stated in the article.

I just heard about this system - a guy at my dad's work does this. You intially save up whatever the cost of the car is (say $20k) and keep it for three years (or 5 or 10), but keep paying monthly payments into your bank account (say $200 a month), so when you trade it in and lose $5k thanks to depreciation, you have enough to cover it in cash. So the end result is similar to leasing, but you get unlimited mileage and can do whatever mods you want to the car. And you never have to spend $15/20/25k/whatever to buy a car again, just the first time and then a lifetime monthly payment.

Pretty cool idea. Now I just need $20k...

That's equally retarded... buying car new and selling it after 3 years = BIGGEST depreciation hit.

If you save up 20K and buy a used car, your depreciation loss will be a lot lower (both percentage and $). Cars have highest rate of depreciation in the first 3 years.

You should be saving money in either casel; that whole "put monthly payments in your bank account" is just than mental accounting. Your car is depreciating regardless of what you do with your other money.