The True Cost of Owning a Car
Depreciation, insurance, fuel, repairs and loan interest add up fast. Learn how to find your real cost per month and per mile.
The sticker price is only the start. Over five years a $30,000 car in the calculator's example costs about $45,000 once everything is counted, or roughly $750 a month.
Where the money goes
- Depreciation is often the largest cost, around $16,700 in the example.
- Fuel and insurance are steady, together $16,000.
- Loan interest is $5,000 here, and more with longer terms.
- Repairs, registration and fees fill the rest.
Ways to lower it
A used car that is two or three years old has already lost the steepest depreciation. A shorter loan saves interest. Shopping for insurance each year helps.
Check what you can afford
Enter your own details in the car ownership cost calculator. Then test the loan with the car loan calculator and your budget with the car affordability calculator.
This article is general education, not financial advice.