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

Source: https://www.kbb.com/new-cars/about-total-cost-of-ownership/