True Cost to Own

While car shopping over two years ago, I came to be a passing acquaintance of Edmunds.com. I cann't pretend I know all of Edmunds features, but one that I found (and continue to find) uber useful is their True Cost to Own estimator. In their own words, TCO "helps you estimate the total five-year cost of buying and owning a vehicle - including some items you may not have taken into consideration."

Of course, as with all generalizations, the TCO calculator must make certain assumptions, such as:

• average annual mileage is 15,000 miles;
• the buyer is financing the vehicle using traditional financing, not lease financing;
• the buyer is "in the Gold credit tier";
  
• the buyer is putting a 10% down payment on vehicle; and
  
• the retail contract term is 60 months.

Overall, the TCO calculator helps to compare the cost of a car over the span of five years by comparing your estimated costs in seven specific categories:

1. depreciation
2. insurance
3. financing
4. taxes & fees
5. fuel
6. maintenance
7. repairs

For a more detailed breakdown of associated costs, see here.

And while it doesn't claim omniscience, the TCO calculator does at least serve as a reminder of the costs of new car ownership. As Edmunds.com says, "A benefit of using this tool is that you can...make a more informed choice."