Most people underestimate the cost of owning a vehicle. They may count monthly payments, regular operating expenses and maintenance, but too many people forget about other major costs such as depreciation and insurance.
See also: 12 ways to save on car expenses
The following expenses must be included to calculate the true yearly cost of owning a vehicle.
- Vehicle expenses
- Monthly purchase payments or lease payments
- Regular operating expenses (gasoline, parking and tolls)
- Regular or long-term maintenance (oil changes, tune-ups, repairs and parts)
- Registration or license fees
- Inspections or emissions fees
Of course, your own vehicle costs can vary quite a bit depending on how old the vehicle is and how many miles it is driven and under what conditions. Whether the vehicle is purchased or leased is another important factor.