Cost of Car Ownership

Many people mistakenly believe that the only investment required for owning a vehicle is the initial purchase. And while it’s true that you’ll undoubtedly fork over a decent chunk of change as a down payment, and will be responsible for several hundred dollars per month in loan and insurance costs, there are other costs associated with owning a vehicle. These costs are referred to as the cost of ownership, and depending on the type of vehicle you own, and what your driving habits are, your cost of vehicle ownership may be more or less than, say, your neighbor’s or your sister’s.

photo credit: Car and Driver

Take the Toyota RAV4, for example. The rav4 cost of ownership may be a bit higher than the cost of owning a compact vehicle, simply because the rav4 is an SUV and thus costs more to run and maintain. It’s estimated that repair costs will be little to nothing during the first two to three years, but after that you’re looking at higher costs, simply because you’ll most likely need to replace worn out parts, such as tires, wiper blades, and the vehicle battery.

When considering your next vehicle purchase, be sure to ask your dealer about the cost of ownership, as these estimates should be taken into consideration before you sign the dotted line.