True Cost of Ownership Calculator
Your monthly payment is just the beginning. Calculate the real cost of owning a car including depreciation, insurance, fuel, maintenance, and more.
Purchase & Financing
Running Costs
Depreciation
Depreciation Schedule
True 5-Year Cost of Ownership
$50,885
$848
$0.85
$23,296
$6,089
$7,500
$9,000
$4,000
$1,000
What You Pay
Value Lost & Recovered
This is what the car actually costs you in depreciation
Your monthly payment is $685, but your true monthly cost is $848.
Understanding True Cost of Ownership
Visible Costs
Costs you see and plan for:
- •Monthly payment or purchase price
- •Insurance premiums
- •Fuel costs
- •Registration and taxes
Hidden Costs
Costs often overlooked:
- •Depreciation (often the biggest cost!)
- •Maintenance and repairs
- •Tire replacement
- •Opportunity cost of down payment
Depreciation: The Silent Cost
For a new car, depreciation is typically the single largest cost of ownership. A new car loses about 20% of its value in the first year and roughly 15% each year after. A $40,000 car could be worth just $20,000 after 5 years — that's $20,000 in depreciation alone, or about $333/month you don't see leaving your wallet but is very real.
Tips to Reduce Ownership Costs
Buy 1-3 years used
Avoid the steepest depreciation curve
Consider fuel economy
15 vs 30 MPG = thousands over 5 years
Check reliability ratings
Toyota, Honda, Mazda often lowest repair costs
Shop insurance before buying
Some cars cost 2-3x more to insure
Frequently Asked Questions
What is the average cost of car ownership per year?▼
According to AAA, the average cost of owning a new car is about $10,000-12,000 per year when you include depreciation, insurance, fuel, maintenance, and financing costs. This works out to roughly $800-1,000 per month in true cost, often much higher than just the monthly payment.
How much does a car depreciate per year?▼
A new car typically loses 20-25% of its value in the first year, then about 15% per year after that. After 5 years, most cars retain only 40-50% of their original value. Some brands (Toyota, Lexus, Porsche) hold value better, while others (luxury sedans, EVs) depreciate faster.
Is it cheaper to buy new or used?▼
Buying a 2-3 year old used car is typically the best value. You avoid the steepest depreciation while still getting a relatively new car with modern features. However, new cars come with full warranties and lower maintenance costs initially. Run the numbers for your specific situation.
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Now that you know the true cost, browse verified deals to find the best price on your next vehicle.
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