Total Cost of Ownership of a CarMar 14th, 2018
When planning to buy a new car, it is essential to know how much the car is going to cost over the long run. Apart from monthly payments, taxes and fees, and any finance charges, buyers must take into account other expenses such as insurance, depreciation, maintenance cost and fuel cost.
- Maintenance costs. You will have to factor in the maintenance cost when buying a new car. Purchasing a car with cutting-edge technology or high performance will cost more to maintain. Over time you will need to change the brakes, tires, and transmission fluids. Buying a new car may cost less to maintain because many manufacturers offer maintenance programs for new vehicles.
- Fuel costs. When planning to purchase a car, you should identify the kind of gasoline the car will be using. Using regular unleaded gas can be beneficial than using premium because premium gasoline is expensive than regular gasoline.
- Vehicle depreciation. The most significant variable in a brand-new vehicle is depreciation. A new car loses almost one-third of its original value in the first year. Buying a used car will save you the depreciation cost because old vehicles depreciate at a lower rate.
By estimating all the listed cost above, you will be in a position to tell whether or not you can afford a new car. You may as well visit our sales department at Audi Midtown Toronto for more information and any queries.