Long Term Expenses Of Cars

red-carConsumers often shop for a new vehicle with a certain budget in mind. However, it’s important to think long term when buying a car straight out of an auto dealership. A salesperson might offer a reduced price on certain makes and models that are not being sold as much as others. A low sale price does not necessarily mean that customers are getting a great deal down the road. The cost of owning a particular vehicle needs to be fully understood. The biggest expense associated with driving any passenger car is fuel. On average, a driver in North America spends several hundred dollars each month at the gas station. For luxurious vehicles that run on premium unleaded fuel, the costs of ownership are even higher.

Fuel efficiency naturally controls the cost of ownership of a vehicle. The modern auto market has developed standards for sedans and crossover SUVs to have fuel economies of well above 30 miles per gallon on the highway. There is also a trend of designing smaller compact engines that deliver clean and efficient performance. Drivers may opt for four or six cylinders instead of powerful V8 engines.

Gas attributes to a relatively fixed cost of ownership of a vehicle. Of course, there are other variable costs that may essentially come up. For example, major repairs on mechanical components can be expensive. Work on the brakes, engine and transmission can cost car owners thousands of dollars. Similarly, auto body work can be very costly especially for upscale cars that have special coatings and finishes. It is important to remember that auto insurance companies still force clients to pay for deductibles for any auto body work. 

The depreciation value also plays a major role in the projected cost of ownership of a car. Statistics are used to estimate the market value of specific car models over the course of five years. A car with a great resale value is very desirable when it’s being advertised in the show room. Considering the cost of ownership for Toyota and other cars is an example of long term analysis by drivers.

Mohd. Hashim Khan

I work as a freelance web designer and developer and enjoys fiddling with machines and electronics stuff. I am also working as a part time computer teacher at Aligarh Muslim University. I share my knowledge on various topics here so that others can make use of it and take benefit from my experiences.

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