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

Family In Car
Posted in Loans

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/