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:
- Medium Sedan:
- Medium SUV:
- Large Sedan:
- 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.
Karen Johnston, AUTO REPAIR INSIDER
All About Automotive, 139 NW 2nd Street, Gresham, OR 97030
Steve and Karen Johnston are owners of All About Automotive, providing auto repair and auto maintenance in Historic Downtown Gresham. If you have questions or comments, call them at 503-465-2926 or email them at [email protected]