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  1. #1
    Deal GURU
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    Default What Does it Really Cost to Drive Your Car?

    by Sally Herigstad, CPA
    Stop worrying about the high cost of gas.

    Itís not that gas isnít expensive. It is. But we tend to notice something we buy regularly with its price announced by a giant sign every time. While we fret about the cost of gas, however, other car expenses are making far worse dents in our budgets!

    The most expensive part of owning a car, especially if you drive a late-model vehicle, is depreciation. If you finance your car, interest expense is probably next. Then thereís insurance, repairs, registration and fees, tires, extended warranties, oil changes, and even car washes. It adds up!

    By the time you pay all the other expenses, it probably costs you over 50 cents for every mile you drive, according to a 2008 study by the AAA.

    Hereís how to keep your total car expenses down:

    Drive less, regardless of how the price of gas goes up and down. Knowing it costs 50 cents a mile to drive to town, youíll want to combine as many errands into one trip as possible.
    Avoid buying cars on time. If you canít buy a car with cash, buy a used one and pay it off quickly. Then, save up for the next car so you never make car payments again!

    Donít buy a new car to save gas. The depreciation, insurance, finance charges, and sales tax far outweigh any savings on gas.
    The cheapest car to own is probably the one you have. But if you're shopping for a car, call your insurance agent and your auto repair shop first. Theyíll tell you which models cost less to insure and maintain.
    Donít keep cars you donít use. The insurance, depreciation, and registration will cost you. (If you park a car long-term, or if the driver goes away to college without it, tell your insurance company. They may reduce your premiums.)

    For more information, including information to help you calculate your driving costs, see the AAA brochure Your Driving Costs, 2008 Edition.

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  3. #2
    Budget101 Done Digging
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    Default Re: What Does it Really Cost to Drive Your Car?

    More good tips. our state also has a yearly property tax on cars, and it's a LOT higher on new cars.
    Niddi

  4. #3
    Freebies Make My Day
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    Default Re: What Does it Really Cost to Drive Your Car?

    We are lucky, we live in the city on a major bus line. Our car had an electrical fire last year, we decided to wait to get a new car until Mike finished paying off his son's car. So we take the bus ~ everywhere.

    Sometimes I complain because it cost me $1.75 for unlimited rides for 2.5 hrs. But when I looked at the 2008 AAA $.50 per mile, I guess I am saving $. When we had our car, we drove maybe 30 miles a week. Not having a car is not missed much. Life is soooo much smoother (you know you are going to take the bus), rather than (s___ the car won't start, taking it to the shop, then the bill. Let's say we are not mechanically inclined).
    Hope Everyone Is Enjoying The Day. Best Wishes From MN ~ Pamela

  5. #4
    Budget101 Guru
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    Default Re: What Does it Really Cost to Drive Your Car?

    I was hoping that we would sell one of our vehicles, BUT the company truck that hubby was using was one of the casualties of the economy He WAS convinced to sell it before he lost the use of the other truck. I am still holding out hope that it will be gone and no more yearly property tax, insurance, gas, maintenance, etc.

    Ah, that would be lovely....

 

 

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