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The True Cost of Driving
August 1st, 2012
by: Mike Najjar
Q: Do you know how much it costs you to drive from Point A to Point B?
Consider this when you need to spend $1,000 in maintenance or repairs to prolong the useful life of your vehicle:
- The average new car now costs around $23,500+, so financing that car at 8% interest over 4 years runs $573.70 per month.
- The average full-coverage insurance policy costs around $95.00 per month.
- Most people drive an average of 15,000 miles per year, which comes to 60,000 miles over 4 years. That mileage requires an average of $1,616 in maintenance over 4 years, which come to $34 per month.
- Based on these averages, driving costs you $702.70 per month, or $8,432.40 per year, not counting tires or gas! (And that’s after paying $1,410 in sales tax!)
A: Driving from Point A to Point B costs you $33,729.60* over 4 years!!!
Compare this to spending $1,410 in maintenance:
For $1,410, or an average of $58.75 per month, maintenance and repairs will add another 24 months and/or 30,000 miles to the life of your vehicle!
- You cannot rent, lease, beg, borrow or buy a vehicle to use for $58.75 per month!
- Compare this to buying a $23,500 new car:
- Over 24 months, a new car will cost you $16,864.80, with an average monthly cost of $702.80, plus $1,410 in Missouri (6%) sales tax! Would you rather spend $1,410 for taxes or $1,410 for repairs and maintenance to get another 24 months and/or 30,000 miles out of your car?
- Keeping your vehicle well maintained will save you $16,864.80 over 24 months. Wouldn't you rather use that $16,864.80 to realize your dreams for retirement or pay for your children's education?
|The True Cost of Driving was written by Mike Najjar of Master Auto and Tire|
Tags: auto repair
Posted in: Newsletter