The American Automobile Association, better known as AAA, has updated their statistics on the true cost of owning a car, in Your Driving Costs 2015. I suspect that most people have only a vague idea of what it actually costs to own a car. Most would probably combine the annual cost of their car payments, car insurance, and a small allowance for gasoline and maintenance. That would produce a rough approximation, but probably one that falls short of the true cost. The AAA analysis is actually quite detailed, and makes generous room for such variables as the type of car owned (small, medium, or large sedan), as well as the number of miles driven. You can pretty much customize what your own cost will be on a per vehicle basis, based on the variables …show more content…
According to Gas Buddy.com, gas prices in the states located on the Gulf of Mexico are less than $2 per gallon, while they are over $3 in much of California and Nevada. Finance charges. AAA lists this expense at $665 per year, which assumes that you bought your car with a 10 percent down payment, with a five year loan and average credit. The amount you pay will vary depending upon the size of your down payment, the length of your loan, and your actual credit. Depreciation. AAA lists this is the single biggest cost of owning a car. At $3,654 it represents more than 40 percent of the annual cost. This should come as no surprise, since new cars in particular experience rapid depreciation in the early years of ownership. Though many consumers don’t think of depreciation in this way, it is very much a real cost. It represents the loss in value of the vehicle over its useful life. Cars Direct reports that on average, a new car depreciates by 20 percent as soon as you drive it off the lot, then at roughly 15 percent per year thereafter. Of course, those are just average numbers. Individual depreciation rates are based heavily on the make and model (some vehicles retain their value better than others), mileage, and even the condition of the
The simple car that was easy to fix with some simple tools have now become as complex as a supercomputer on wheels. Most people today have decided that automobiles of today are too complicated and just send their cars to a professional for repairs. As of January 2013, the average age of a vehicle operating on the roads today is 11.4 years old. (Associated Press, 2013). People are holding on to their cars a lot longer than in the past. Although, some claim that it is because today’s cars last longer. There is no doubt that today’s economy is also playing a part in the public’s reluctance to part with their older vehicles. However, cars will always need repairs.
Another misleading portion of car commercials is the financial explanation is: “$49 down or $0 down with no interest for 6 months” (Spitzer, 2003). Sounds great doesn’t it? Well, this is where many college students are tricked because they never tell you about the tax, title, and registration fees that are included at the time of your purchase.
Since the 1990¡¦s leasing of cars has skyrocketed which nowadays most people tend to lease their car because leasing offers an attractive and affordable means of driving a new car every few years. In the past few years, car dealership have been running amazing deals such as ¡§no down payment¡¨ or ¡§low, attractive payments¡¨ these advertisements tend to make leasing even more appealing than financing. And because of these incentives you can often buy a more expensive, more luxurious car for the same payment of financing a lower priced car.
2. What are some of the ways that you can save money when buying a car? You can save money by buying a used car, but before you even buy it make sure that you look at all the paper work on the car; and see what kind of problems it has had. Also make sure it’s the car you want and that you’re going to enjoy it.
I think that this will be true as older cars get sold for less money.
Electric vehicles are a wise choice because they are economically feasible. Justin Loiseau believes that electric vehicles are much better when it comes to fuel costs (1). This means that if you own a gas-powered car, it will be more expensive to have to keep filling up your tank with gas. The cost per mile for gas-powered vehicles cost around three times as much per mile as electric vehicles. Gas vehicles are at an average of $3.65 a gallon while electric vehicles fill up for an average of $1.14 per eGallon. The only negative trait about electric vehicles is that the battery has to be replaced about every eight years which is an expense that gas-powered car owners don’t have to worry about. Something that they do have to worry about is major engine repairs. Depending on the type of car you have, prices will vary. A normal gas-powered Ford Focus will have a sale price of $24,495 while an electric Ford Focus will have a sale price of $39,995. In this case, the gas-powered Ford Focus would be less expensive once all the costs are added up. A Mercedes S Class...
At the beginning of the 20th century there were less than 8000 cars in America and even fewer were gas powered. Louis Chevrolet, a race car driver, created an automobile for $2150 that contained a six cylinder 4.9 liter engine. The first popular car he produced on the market was the Baby Grand, which was sold for $875. Accessories such as electrics were optional on Chevrolets until 1917. With the first real boost in production and innovation cars were sold at a standard price increasing sales from 13,600 to 70,701. In the years to come hundreds of companies
Used Car Loans: 3 Pros and Cons. (2012, January 27). Retrieved May 3, 2014, from Cars Direct: http://www.carsdirect.com/auto-loans/used-car-auto-loans-3-pros-and-cons
Cars have been a necessity for living ever since the first car was manufactured in 1908. Most people will use a car every day, whether it is to get to work at a prompt time or travel anywhere with ease. Car’s create a cheap and easy solution for traveling where you want to go when you want to go. The car needs to remain central in the lives of Americans because it creates the freedom, jobs, and economic support.
People can save a lot of money with Hybrid cars because they use less gas. Hybrid cars’ average mileage is thirty - nine miles per gallon. Regular cars’ are about twenty - seven miles per gallon. Hybrid cars use less gas than a regular car going the same distance. A hybrid car gets five miles per gallon better mileage on average than a regular car. Because hybrid cars run in part on different fuel sources, they do not need to be filled up with gasoline that much. (Roos) In average people buy 510 gallons of gas in a year with a normal car. With a hybrid they will save 218 gallons and save about $763. (Rose)
We all dream in the day we get to purchase our first vehicle. The day we stop asking our parents to take us here and there. Some may say buying a vehicle is a pain in the you know what. It can seem like a stressful situation if you're not familiar with the process. However, working in the car industry has taught me valuable tips and tricks that will help me teach you to save money when car buying.
If you have ever watched or heard of NASCAR you would know that when there is a crash it is often huge and deadly, however, the plethora of safety features they use keeps the driver safe. I am not asking for that level of protection but I would like to have a car that is at least in good condition and runs well. It will be worth the cost to fix it if you want it to last longer, and it would not be that much for parts since it is a cheap car. I also know that when the rest of the family drives it they would enjoy having a nicely fixed up ride as opposed to a car that looks like a junker. Getting our car fixed should be imperative rather than optional.
Accounting analysis refers to the accounting information provided by accounting, the application of certain analytical methods, the business process and its business results of quantitative and qualitative analysis. The result of accounting analysis is the main basis for accounting forecasting and accounting examination.
With convenience comes cost. There are many costs associated with owning a car. Firstly learning to drive can be prohibitive, with lessons often out of a lot of peoples budgets. Once you have passed your test buying a car can also prove expensive. It is often the case we have to buy cheap second hand cars as new cars are very expensive. Sometimes this is fine and you can have a reliable car, but other times you pick one up that’s not been well maintained and can cost you a fortune in repairs and keeping it on the road.
...Mercedes-Benz Prices with MSRP & Invoice. (n.d.). In True Car. Retrieved December 3, 2013, from http://www.truecar.com/prices-new/mercedes-benz/