In the market for a new car, but not sure what to choose or how much you can afford?

Family In Car

One thing to consider is the 5-Year Cost to Own—the total amount of vehicle-related costs you will likely have to cover during the first 5 years of owning a car.

What does 5-Year Cost to Own include?

  1. Depreciation (Loss in Value) — the difference between what you paid and what it’s worth
  2. Fuel — the cost to fill up, based on 15,000 miles per year.
  3. Maintenance — what it costs to keep the car running well
  4. Insurance — the average in your state, including collision and liability
  5. Repairs — based on a no-deductible extended warranty
  6. Financing — since most people don’t have the cash on hand to buy the car outright
  7. State fees — items like sales tax, license and registration

Still not sure what you can afford? Try our loan calculator



Subscribe To Our Newsletter

Sign up for financial articles delivered right to your inbox!

Sign Up