Adjust Text Size

Buying a New Car: True Cost to Own

Written by Nickel - 2 Comments

Since I’ve been in a car buying mood recently, I thought I’d share a useful calculator that I recently ran across. It’s the Edmunds.com True Cost to Own (TCO) calculator, which figures the ‘real’ cost of owning a vehicle over the first five years.

According to the blurb on the site:

The Edmunds.com True Cost to Own (TCO) pricing system calculates the additional costs you may not have included when considering your next vehicle purchase. These extra costs include: depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs.

In poking around this site, I was pleased to find that our new 2005 Honda CR-V LX 2WD falls out on the low end, particularly when compared to other cars in its class. The numbers were actually a bit of an overestimate, as we paid considerably less for our car than the figure that they used for the purchase price, and we didn’t finance it. Then again, assuming that the fuel costs are based on EPA estimates, they’re likely to be underestimated. Despite these possible inaccuracies, however, the TCO calculator still looks like a very useful tool for making apples-to-apples comparisons across makes/models when you’re in the market for a new car.

[Source: Money & Investing]

Published on October 5th, 2005 - 2 Comments
Filed under: Automotive, Online

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Top Cards by Category

CASH BACK CREDIT CARD (see all)

Chase Freedom^® Visa - $200 Bonus Cash Back

Earn $200 Bonus Cash Back after you make $500 in purchases in your first 3 months. 5% Cash Back on up to $1,500 spent in bonus categories each quarter.

AIRLINE MILES / REWARDS POINTS CREDIT CARD (see all)

American Express Premier Rewards Gold Card

Earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else.

CREDIT CARD DEALS (see all)

American Express^® Green Card - Introductory Annual Fee of $0 for the First Year!

Receive 10,000 Membership Rewards bonus points when you spend $500 in your first three months of card membership. Redeem bonus points for gift cards valued at $100. This is a charge card with no pre-set spending limit.

BALANCE TRANSFER CREDIT CARD (see all)

Slate^® from Chase - No Balance Transfer Fee

No Balance Transfer Fee!* 0% Intro APR for up to 15 months on purchases and balance transfers. This card offers Blueprint, free and customizable account features that help you avoid unnecessary interest and pay your balances down faster.

LOW INTRODUCTORY RATE CREDIT CARD (see all)

Discover^® More Card - $0 Balance Transfer Fee!

Enjoy no balance transfer fee for a limited time. 0% introductory rate on Balance Transfers and Purchases. Earn up to 5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*

LOW INTEREST RATE CREDIT CARD (see all)

Discover^® More Card - $0 Balance Transfer Fee!

BUSINESS CREDIT CARD (see all)

The Business Platinum Card^® from American Express OPEN

Enjoy amenities for you and your business, like: complimentary airport club access, including American Airlines Admirals Club(R) lounges.

STUDENT CREDIT CARD (see all)

Discover^® Student Clear Card

5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*. Up to 1% unlimited Cashback Bonus on everything else. No annual fee

GAS REBATE CREDIT CARD (see all)

American Express Premier Rewards Gold Card

Earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else.

BAD CREDIT CREDIT CARDS (see all)