Cost of owning and driving a car

Depreciation is probably the most important cost of owning a new car. Most vehicle will loose half of their value over a period of three or four years.

If your new vehicle costs $20,000.00, in three to four years it will only be worth $10,000.00.

At 12,000 miles or 20,000 kilometers a year, your cost is
$0.27 a mile or $0.16 a kilometer.

Insurance will be from $700.00 to $1,500.00 a year and more for a sports car, if you are under 25 years old, single have little experience, are a bad driver with an history of many accidents (you will need a good car accident lawyer) (Auto Accident Attorney) and also depends where you are living. Let's take the median value $1,100.00 that comes to
$0.091 per mile or $0.05 per kilometer.

License plates is again variable depending on your country, state or Province. let's take a number $150.00 per year.
This adds another $0.0125 per mile to your cost or $0.0075 per kilometer.

Fuel is getting more and more expensive these days.At around $2.25 for a US gallon of gas,and around $1.00 for a liter of gas in Canada if your automobile goes 100 kilometers on 10 liters
that is $0.16 per mile for fuel or around $0.10 per kilometer.

Driving this new automobile

will cost you $0.53 per mile or $0.43 per kilometer .

What about a used automobile

Of course, driving a used vehicle will be much cheaper, especially if you do not travel that much.

Let's say that you buy the same vehicle that we took as example earlier.

You buy it used after 3 years for half the value it was worth new, which comes out to $10,000.00

Car depreciation will again run about 50% over 3 years.

That is $5,000.00Let's say you put 36,000 miles or 60,000 kilometers over a 3-year period.
You depreciation cost will be $0.138 per mile or $0.083 per kilometer.

Insurance should be a little less, around $800.00/year
or $0.022/mile or $0.013/kilometer.

Plating is the same $0.0125 per mile or $0.0075 per kilometer.

Fuel is also the same $0.10 per kilometer for fuel or around $0.16 per mile.

You may have to secure a car loan for the amount of $10,000.00 at 8% interest, which is around $800.00 interest the first year.
The loan will cost $0.066/mile or $0.04/ kilometer the first year.

Most vehicles are not warranted after 3 years, most automobile are warranted on power train only for up to 60,000 miles or 100,000 kilometers.

Depending on the vehicle that you choose, you may have to put some repairs? Our advice is that after you choose the type of automobile that you want, check the reliability rating of different make/models and buy the one that is considered most reliable.You may want to buy Extended warranty? coverage for this used vehicle. This will add to your driving cost up front, but will cover you for major repairs.

Driving this used automobile should come to$0.3986/mile or $0.2435/kilometer.

Now, buy or lease a new vehicle?

You drive from 20,000 to 24,000 kilometers/year, or 12,000 to 15,000 miles/year, you want a new automobile every 3 or 4 years, the new car warranty goes for 3 or 4 years, then maybe it make sense to lease instead of buying a new automobile.
On a longer period, it usually comes cheaper to buy instead of leasing a new car. Your out of pocket money will be substantially higher over a period of 5 years if you buy and finance the new car.

Use this table to figure out your cost.

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