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Acquiring a new vehicle could now set you back an additional $7,600 annually
Acquiring a new vehicle could now set you back an additional $7,600 annually
Acquiring a new vehicle could now set you back an additional $7,600 annually
Ramin Vandi
Ramin Vandi
March 14, 2024
March 14, 2024
Owning a car involves various expenses beyond just filling up the tank. The annual outlay for new vehicles has surpassed $7,000, a figure that has almost doubled from $4,191 approximately ten years ago. Despite the stabilization in the prices of new cars, the overall cost of owning a car continues to escalate. Potential car buyers should adjust their budgeting to accommodate these rising costs beyond the purchase price.
In recent times, the overall expenses associated with owning a car have spiked, while the sticker prices of new cars have remained relatively steady. Operative costs for a new car driving 15,000 miles a year can reach an average of $7,612 annually, excluding depreciation, as per the AAA's "your driving costs" study. This amount marks a significant increase from the $4,191 recorded a decade ago.
Edmunds, a comprehensive automotive information site, reveals that the yearly direct costs for new cars can vary from $29,247 to $36,404 over a five-year period.
Exploring the financial commitments of owning 2024's top-selling cars in the US like the Ford F-150, Toyota Rav4, and Tesla Model Y offers insight into these costs. Edmunds' valuation assumes a car is driven 15,000 miles per year and financed over a 60-month term following a 10% down payment.
Owning an F-150, America's favored vehicle, would accrue approximately $36,400 in additional costs during the initial five years, on top of the buying price. These expenses cover fuel, loan interest, insurance, maintenance, taxes, fees, and eventual repairs.
True Costs of Owning a Ford F-150
The comprehensive five-year cost, including $36,400 in additional expenses atop the $48,100 purchase price of a new F-150, approximates to $85,000.
In comparison, the Tesla Model Y, the leading electric vehicle in the US, is expected to generate about $34,500 in extra costs over five years, making its total ownership cost close to $91,000 when including the original purchase price.
Despite the reduced fuel costs, ownership expenses like repairs and insurance for the Tesla Model Y are significantly higher.
Total Ownership Expenses for a Toyota RAV4
For the Toyota RAV4, the foremost non-pickup vehicle in the US, its five-year expected costs are around $29,300. The hybrid model, despite incurring higher insurance, maintenance, and repair fees, balances out with the lower electricity costs compared to gas.
Over five years, the complete cost for owning either a gas or hybrid RAV4 is estimated at $64,300, incorporating the original buying price of approximately $35,000. Both versions present much lesser depreciation than the F-150 and Model Y, losing about $12,300 in value over the first five years.
The extensive costs tied with acquiring a new vehicle underscore the critical need to consider every aspect of ownership. Booking a test drive and seeking advice on the total ownership cost becomes essential for informed decision-making. For Australians contemplating a new purchase, booking a test drive online offers a practical step towards experiencing a vehicle firsthand while fully understanding the financial implications of such an investment.
Owning a car involves various expenses beyond just filling up the tank. The annual outlay for new vehicles has surpassed $7,000, a figure that has almost doubled from $4,191 approximately ten years ago. Despite the stabilization in the prices of new cars, the overall cost of owning a car continues to escalate. Potential car buyers should adjust their budgeting to accommodate these rising costs beyond the purchase price.
In recent times, the overall expenses associated with owning a car have spiked, while the sticker prices of new cars have remained relatively steady. Operative costs for a new car driving 15,000 miles a year can reach an average of $7,612 annually, excluding depreciation, as per the AAA's "your driving costs" study. This amount marks a significant increase from the $4,191 recorded a decade ago.
Edmunds, a comprehensive automotive information site, reveals that the yearly direct costs for new cars can vary from $29,247 to $36,404 over a five-year period.
Exploring the financial commitments of owning 2024's top-selling cars in the US like the Ford F-150, Toyota Rav4, and Tesla Model Y offers insight into these costs. Edmunds' valuation assumes a car is driven 15,000 miles per year and financed over a 60-month term following a 10% down payment.
Owning an F-150, America's favored vehicle, would accrue approximately $36,400 in additional costs during the initial five years, on top of the buying price. These expenses cover fuel, loan interest, insurance, maintenance, taxes, fees, and eventual repairs.
True Costs of Owning a Ford F-150
The comprehensive five-year cost, including $36,400 in additional expenses atop the $48,100 purchase price of a new F-150, approximates to $85,000.
In comparison, the Tesla Model Y, the leading electric vehicle in the US, is expected to generate about $34,500 in extra costs over five years, making its total ownership cost close to $91,000 when including the original purchase price.
Despite the reduced fuel costs, ownership expenses like repairs and insurance for the Tesla Model Y are significantly higher.
Total Ownership Expenses for a Toyota RAV4
For the Toyota RAV4, the foremost non-pickup vehicle in the US, its five-year expected costs are around $29,300. The hybrid model, despite incurring higher insurance, maintenance, and repair fees, balances out with the lower electricity costs compared to gas.
Over five years, the complete cost for owning either a gas or hybrid RAV4 is estimated at $64,300, incorporating the original buying price of approximately $35,000. Both versions present much lesser depreciation than the F-150 and Model Y, losing about $12,300 in value over the first five years.
The extensive costs tied with acquiring a new vehicle underscore the critical need to consider every aspect of ownership. Booking a test drive and seeking advice on the total ownership cost becomes essential for informed decision-making. For Australians contemplating a new purchase, booking a test drive online offers a practical step towards experiencing a vehicle firsthand while fully understanding the financial implications of such an investment.
Owning a car involves various expenses beyond just filling up the tank. The annual outlay for new vehicles has surpassed $7,000, a figure that has almost doubled from $4,191 approximately ten years ago. Despite the stabilization in the prices of new cars, the overall cost of owning a car continues to escalate. Potential car buyers should adjust their budgeting to accommodate these rising costs beyond the purchase price.
In recent times, the overall expenses associated with owning a car have spiked, while the sticker prices of new cars have remained relatively steady. Operative costs for a new car driving 15,000 miles a year can reach an average of $7,612 annually, excluding depreciation, as per the AAA's "your driving costs" study. This amount marks a significant increase from the $4,191 recorded a decade ago.
Edmunds, a comprehensive automotive information site, reveals that the yearly direct costs for new cars can vary from $29,247 to $36,404 over a five-year period.
Exploring the financial commitments of owning 2024's top-selling cars in the US like the Ford F-150, Toyota Rav4, and Tesla Model Y offers insight into these costs. Edmunds' valuation assumes a car is driven 15,000 miles per year and financed over a 60-month term following a 10% down payment.
Owning an F-150, America's favored vehicle, would accrue approximately $36,400 in additional costs during the initial five years, on top of the buying price. These expenses cover fuel, loan interest, insurance, maintenance, taxes, fees, and eventual repairs.
True Costs of Owning a Ford F-150
The comprehensive five-year cost, including $36,400 in additional expenses atop the $48,100 purchase price of a new F-150, approximates to $85,000.
In comparison, the Tesla Model Y, the leading electric vehicle in the US, is expected to generate about $34,500 in extra costs over five years, making its total ownership cost close to $91,000 when including the original purchase price.
Despite the reduced fuel costs, ownership expenses like repairs and insurance for the Tesla Model Y are significantly higher.
Total Ownership Expenses for a Toyota RAV4
For the Toyota RAV4, the foremost non-pickup vehicle in the US, its five-year expected costs are around $29,300. The hybrid model, despite incurring higher insurance, maintenance, and repair fees, balances out with the lower electricity costs compared to gas.
Over five years, the complete cost for owning either a gas or hybrid RAV4 is estimated at $64,300, incorporating the original buying price of approximately $35,000. Both versions present much lesser depreciation than the F-150 and Model Y, losing about $12,300 in value over the first five years.
The extensive costs tied with acquiring a new vehicle underscore the critical need to consider every aspect of ownership. Booking a test drive and seeking advice on the total ownership cost becomes essential for informed decision-making. For Australians contemplating a new purchase, booking a test drive online offers a practical step towards experiencing a vehicle firsthand while fully understanding the financial implications of such an investment.
