A base MINI Cooper starts around $19,000. A Mitsubishi Lancer, on the other hand, starts around $14,000. Obviously, its more expensive than the Cooper.
What factors go into determining the true cost of owning a car? Of course, there’s the amount you shelled out to get the car in the first place. Then there is the cost of maintenance, repairs, gasoline. After the obvious, however, then what comes into play?
There are six main factors in determining the true cost of owning a car:
Depreciation is considered to be the largest factor. It is the loss in value of the vehicle over a defined period of time. On average, it accounts for about 48 percent of total ownership costs over a five year period. Some models depreciate faster than others because of oversupply, limited appeal, or rebates on similar new models.
Fuel cost is one of those obvious factors. You calculate projected fuel costs by assuming first that the vehicle will be driven 12,000 miles a year. Multiply that by the average price of a gallon of regular gas as of December 2007.
Interest is tied into the vehicle’s price.
Insurance costs varies depending on your age, location, driving record and more.
Maintenance and repair costs are also obvious factors. The majority of the costs are blamed on the factory warranty during the first three years.
Sales tax is one that you may not consider when you sit down and do the calculations. But, of course, that is part of the cost of the car so it needs to be included.
So taking all of this into account it is understandable that a Mitsubishi Lancer could cost $3,000 more to own than a Mini Cooper Clubman.
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