Total Cost of Owning A New Car

[Threehz]

I'd like to get a better idea of how much it really costs to own a new car. I feel like I have somewhat of an idea of all the different costs that come with it, but no solid understanding as I've never owned one.

Assuming one buys a new car by getting a loan (what the majority of new car purchasers do in my understanding), how much would one pay every month, year, and in total by the time it is paid off?

Has anyone kept track of this? Looking on Edmunds at a 2014 Honda Accord, the true cost to own after only five years is estimated to be $45,000. That seems pretty accurate when you look at the breakdown of costs, but I'd like to get some actual stories.

Thanks r3v

[nando]

man, as much money as I've dumped into my E30, it's way less than 45k over the last 12 years.

fuck buying a brand new car..

[DEV0 E30]

*NEW NEW* 0 Miles on the odometer.

You're paying top dollar. As soon as you drive it off the lot, it's no longer a new car, you've lost value. Depreciation has already hit, and it's going to fall from here on out. Some sheep will be impressed at your 2014, but honestly, most don't care. A warranty is a good thing, but buying brand new isn't always necessary to have a reliable car.

*NEW - slightly used - up to a few years old, 10k-40k miles*

Some miles, but nothing crazy, a large amount of depreciation has already become a factor so you're paying less, a lot less in some cases. Especially if a NEW model/bodystyle has replaced the car you're looking at. 95% of people won't even be able to tell it's a few years old, because they are sheep, and because it looks new.


In my opinion, very few cars should be bought brand new, unless you can afford it, which isn't in the same way that people say they can afford things these days. There are slightly used cars that should be looked at before someone goes to buy something brand new. Before even looking at what a new car will cost, determine your financial situation. It's not just about a financing a car, you could drive a $5,000 car (Honda, Hyundai, etc) for a decade with proper maintenance. Look at your bills, savings, and where you want to be in X amount of time. If you're struggling to make a high car payment on a car you are financing, that won't be paid off for 4-6 years... look at if it's worth it to you. There are many more factors that I don't feel people think about when considering their transportation needs and wants. Sure, we're old car enthusiasts so our logical perception of cars isn't always at the forefront of our minds, and that's fine, it's just good to be aware.


Links that get to the nitty gritty:

Car and Driver:

http://www.caranddriver.com/features/the-advantages-of-buying-a-new-or-used-vehicle

Smart Asset:

http://www.smartasset.com/blog/auto/the-pros-and-cons-of-buying-a-new-car/

Other sources:

https://www.infinityauto.com/knowledge-center/smart-saving-tips/new-vs-used-car-making-best-decision

http://www.dmv.org/buy-sell/new-cars/leasing-vs-buying.php

[mrcheezle19]

Depends on what kind of car you are buying. I dont see where they are getting 45k in five years for an accord. If you bought a fully loaded one maybe but in the first 5 years what are you really doing to the car besides oil changes and maybe 1 set of tires? I guess gas as well, but that still seems high. A simple amortization calculator will answer that question for you. Let's use a Accord EX sticker is 26k let's say after you haggle and get a discount you're at 26k out the door. 2.9% interest 72 months = $393 for a total of 28,400 paid back or basically 2400 in interest. I dont see someone spending 20k in 5 years for maintain that car. At any rate, just lease a cheap civic or focus and have a 200 or less a month payment. With a lease you never end up losing your ass and can be in a new model every several years. No brain no headache, you just have to be ok with the fact that you'll always have some kind of car payment, but at the 200 level is that really a big deal for a car with full warranty always, never buying tires or brakes, and maybe 5 or 6 oil changes which most brands give away anyways. In my book yes it's worth it.

[DEV0 E30]

At any rate, just lease a cheap civic or focus and have a 200 or less a month payment. With a lease you never end up losing your ass and can be in a new model every several years. No brain no headache, you just have to be ok with the fact that you'll always have some kind of car payment, but at the 200 level is that really a big deal for a car with full warranty always, never buying tires or brakes, and maybe 5 or 6 oil changes which most brands give away anyways. In my book yes it's worth it.

Also another option, to be into a new car, making attractive lease offers for economy cars is an option. $200 a month = $2,400ish a year. You likely can't even get a decent E30 for that anymore.

That IS attractive. Especially to someone that literally needs an appliance to get to an from places.

[nrubenstein]

Most of the true cost to own calculators include fuel. So figure on $6,000 or so in fuel cost in there. They probably also include insurance as well.

I would save a ton of money if I switched to leasing a car every three years. There are times when I wonder why the hell I don't sell off my cars and just get a 911 for myself. :p

[Stanley Rockafella]

what's not been mentioned so far, is the comprehensive insurance usually required when leasing a new vehicle. Aside from the monthly payment, that's where the majority of the additional costs come from, costs that you wouldn't need to spend on an old e30

I agree, leasing a new car is very attractive, but it's just screwing you over in a different way. Either way, your still getting screwed.

IMHO, the cheapest and most reliable way is to purchase a 3-4 year old econo car and maintain it with new parts. This will always be the cheapest

[mrcheezle19]

what's not been mentioned so far, is the comprehensive insurance usually required when leasing a new vehicle. Aside from the monthly payment, that's where the majority of the additional costs come from, costs that you wouldn't need to spend on an old e30

I agree, leasing a new car is very attractive, but it's just screwing you over in a different way. Either way, your still getting screwed.

IMHO, the cheapest and most reliable way is to purchase a 3-4 year old econo car and maintain it with new parts. This will always be the cheapest

I agree insurance can be higher, but when I compared my insurance for purchase and lease it was 10 dollars a month difference so nothing crazy there. But yeah getting a used eco box can be the more cost effective way to go. I just like the no headache of a car under full warranty. I already have the e30 to tinker with and deal with, so it's nice having the daily driver be solid without issue, even if it cost me 50 or 100 bucks more, which is worth the convenience to me.

[EyExR]

The biggest cost is that you'll be like every other sucker on the street.

[mrcheezle19]

The biggest cost is that you'll be like every other sucker on the street.

That's ok, they probably don't have a 500hp e30 in the garage :D

[Threehz]

Here is the link to the Edmunds page about the true cost to own for the Accord: http://www.edmunds.com/honda/accord/...tyle=200487215.

Personally, I think buying a new car is silly.

I also think the cheapest option is to buy a quality car in the <$5000 range, and I mean cheapest in the short and long run.

So I really wanted to see if anyone could give some real numbers on what they have paid for their new car in total, or what they pay monthly/yearly (loan/insurance).

[willworkfore30s]

To each his own. I had an e30 and loved it and will have another one before too long, but I just bought a new car and I love it. I love not having to worry about reliability at all. I love power everything and heated everything and synced phones and fancy lights and all that jazz.

Sure you can build all of that into an e30 but to me, my e30 and my new mustang serve two completely different purposes. The e30 was a toy for hooning and tinkering. The mustang is my daily driver. But I didn't want to drive a boring econobox daily. I wanted something comfortable but still good looking and if its fast as hell, well thats a plus.

Anyway, back to the question you were really asking.

When you buy a new car you put money down if you can, then they divide what you still owe on the car up into monthly payments.

Then you have an interest rate that depends on the promotions they have going and how your credit score is. If you have good credit and a good job then you can get a lower interest rate because they are confident you can afford and will pay for the car.

As an example, I have a 48 month loan on my mustang for about $17k. I am young with young credit but my score is better than most. Over the coarse of that $48 month loan, I will not only pay back the $17k I owe, I will pay about $2800 or so (I can't really remember) in interest. So merely because I couldn't pay for it all at once I am losing $2800.

My new mustang probably lost $5k in depreciation the minute I drove it off the lot.

These two things are huge negatives to a lot of people. But as long as you are aware that this is the name of the game, you can decide if that route is for you or not.

Buying used is always a gamble, some more risky than others. But there is a lot of money to be saved by getting a good deal on a solid used car.


EDIT: I see you asked about insurance. This is another instance where there is money to be saved. Obviously with a more valuable car you need more valuable insurance.

My e30 cost me $38 a month for insurance. My 2014 5.0 mustang and my 1989 F150 cost me $130 a month.

All these rates obviously depend on your driving record and credit history.

Just figured I would give you some of the figures you were asking for

[AdironRider]

I have an e30 and a FJ Cruiser that I bought new. The FJ has the best resale and reliability ratings for any new car available currently, so it was a no brainer at .9% interest. Just got an offer for 1k less than I paid out the door and I've driven it for 28k miles and 2 years since then.

Most luxury cars though, ouch.

[mrcheezle19]

Here is the link to the Edmunds page about the true cost to own for the Accord: http://www.edmunds.com/honda/accord/...tyle=200487215.

Personally, I think buying a new car is silly.

I also think the cheapest option is to buy a quality car in the <$5000 range, and I mean cheapest in the short and long run.

So I really wanted to see if anyone could give some real numbers on what they have paid for their new car in total, or what they pay monthly/yearly (loan/insurance).

my least is 150 a month for 24 months (2014 Ford focus se)
buyout is 12900
traded in 97 740il $1750
Insurance 103 a month
gas 80 a month
330 a month for my car= about 4k a year

[naplesE30]

http://online.wsj.com/news/articles/SB10001424052702304185104579437062475813616