Cost of ownership The other side of what car buyers often ignore

While planning to buy a car, you should come across the terms: "The cost of buying a car" and "cost of ownership" Let us understand the difference between the two terms.

 The cost of buying a car: It involves the retail price of the car you pay at the dealer to buy. Also called MSRP (manufacturer suggested retail price).

· Cost of ownership: This means that the amount you have to pay the price of the car in a year. The cost of owning a car, including fuel consumption and costs, and service, maintenance, etc.

Let us understand the cost of ownership in the details. According to a complete report, the cost of ownership of more than $ 8,500 per year. Do you think there is too many to keep the car running? Well, here are the different aspects that contribute to it:

· Care and maintenance: Cost of service and maintenance of the car depends on the manufacturer's policy and warranty. The rest depends on how you use it. On average, annual maintenance services and costs up to $ 914, including the cost of tires.

· Fuel: Since the car travels an average distance of 12,000 miles per year and fuel prices of up to $ 1682 for a period of one year.

· Insurance: Fixed insurance payments and you can calculate the cost to easily. On average, the amount of $ 1115 per year of insurance.

· Consumption: consumption vehicle rate depends on the purchase price of the car, and the current age and their lifetime. If you use a car to travel a distance of 15,000 miles, with normal wear and tear, the amount of depreciation is $ 3655 per year.

· Other costs: Financial, licensing, registration and taxation costs are approximately $ 1334 per year. Car buyers often ignore the date and charges. But, in fact, the costs dramatically, the cost of ownership.

· Additional costs: Accessories that you have installed after the purchase of the car contributes to the expenses. In addition, parking on the public expenditure tickets contribute. Parking tickets can cost you a lot more than you can imagine. Also, if you live in the capital, such as New York City, you will have to pay extra fees for parking.

The cost of ownership shows how much you need to save for a car. Buying a car is a big responsibility. Plan well and make informed decisions so that the car does not become a burden to you.