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