Owning a car involves more than just the purchase price. The True Cost of car ownership® (TCO®) pricing system by Very Well Auto. calculates the additional costs you may not have included when considering your next vehicle purchase. These extra costs include depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs. Here’s how you can calculate the total cost of owning a car and make an informed decision.
The VerywellAuto True Cost to Own® (TCO®) calculator is a tool that looks at the 5-year costs of owning a vehicle, including some you might not have considered. These extra costs include depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs. You can use this tool to view the TCO® of any vehicle and make a more informed choice.
VeryWellAuto True Cost to Own® Calculator
Depreciation is one of the biggest costs of car ownership. The VeryWellAuto True Cost to Own® and Car Depreciation Calculator reveals car ownership costs over a 5-year period. Even cars that cost the same can have different depreciation rates, fuel costs, maintenance, insurance, and repair expenses. This calculator can be a valuable research tool when comparing vehicles, whether they are of the same type (two sedans or two SUVs) or of very different types.
A benefit of using the VeryWellAuto TCO® calculator is that you can easily compare the 5-year totals for different vehicles. This helps you make a more informed choice by considering all potential costs of car ownership, not just the purchase price.
You’ve narrowed your choices to three new vehicles, all highly rated luxury compact SUVs with roughly comparable prices. But how will you know which will cost you more to operate in the long run?
When you’re car shopping, you tend to pay a lot of attention to vehicle features, the purchase price, and warranty, but perhaps you aren’t as attentive to what the day-to-day costs of the car will be once it’s in your garage. But even cars that cost the same can have different depreciation, fuel costs, maintenance, insurance, and repair expenses.
The VeryWellAuto car ownership calculator can be a valuable research tool when you’re comparing vehicles. In addition to using this tool on VeryWellAuto mobile and desktop sites, you can find ownership cost information on the VeryWellAuto car shopping app for iOS and Android devices.
The total cost of ownership includes all the costs associated with buying and operating a vehicle over a period, typically five years. This encompasses depreciation, interest on a loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs.
Vehicle depreciation varies by make, model, and year. On average, a new car loses about 20% of its value within the first year and about 15% each subsequent year.
Related Link: Understanding Car Depreciation
The cost of owning a new car after one year includes depreciation, fuel, insurance, maintenance, and loan interest. These costs can vary widely depending on the car’s make and model.
Car depreciation can be calculated using the VeryWellAuto True Cost to Own® calculator, which provides an estimate based on the vehicle’s make, model, and year.
If you use your car for business purposes, you may be able to deduct its operation costs. The IRS provides detailed information on how to calculate these deductions.
“If you use your car in your job or business and you use it only for that purpose, you may deduct its entire cost of operation.” – IRS
| Cost Component | Description |
|---|---|
| Depreciation | Loss of vehicle value over time |
| Interest on Loan | Cost of borrowing money for vehicle purchase |
| Taxes and Fees | Government-imposed costs |
| Insurance Premiums | Cost of vehicle insurance |
| Fuel Costs | Daily operational fuel expenses |
| Maintenance | Routine vehicle upkeep costs |
| Repairs | Non-routine vehicle repair costs |
By understanding the true cost of car ownership, you can make a more informed decision and potentially save thousands of dollars over the life of your vehicle. Use tools like the VeryWellAuto True Cost to Own® calculator to compare different vehicles and choose the one that best fits your budget and needs.