When most people are working out the cost of running their car, they simply include fuel, insurance, and tax. However, there are many hidden costs for which most people are blissfully unaware. We’ve attached an infographic to this post in the hope of setting the record straight. Before you take a look at that though, spend some time reading through the expenses we’ve listed. With a bit of luck, they should help to set the record straight and highlight how much it really costs to run your car over a five-year period.
- Depreciation of the automobile will mean you lose around 48% of its value over five years.
- Interest on any finance you might have taken out can incur an expense of up to 11%.
- Taxes you pay on your vehicle make up another 4% of all the money it costs to run.
- Insurance costs make up around 10%.
- Maintenance and repair over five years will often require around 4% of the total money spent..
- Fuel takes up 24% of all the money you will spend on your vehicle.
With gas, insurance, and repairs combined, it is estimated the total cost of running a car for a single year is $2224. When you multiply that amount by five, it’s clear to see that you will spend a small fortune during the next half-decade. Is it worth spending so much cash on your automobile? Only you can decide. However, you’re going to need a decent job just to keep your car on the road.
Infographic by Navy Federal