The purchase price is only the first cost. Over five years, fuel, insurance, tires and depreciation can add up to much more.
In this article
- What to include
- Compare similar cars
- Use tools
What to include
Depreciation, financing, insurance, fuel or electricity, maintenance, tires and registration. Parking and tolls matter in some cities.
| Cost | Typical share of five-year total |
|---|---|
| Depreciation | 35 to 45 percent |
| Fuel | 10 to 20 percent |
| Insurance | 10 to 15 percent |
| Maintenance and tires | 5 to 10 percent |
| Financing | 5 to 10 percent |
Costs are typical ranges. Check your own situation and local prices.
Compare similar cars
Two cars with the same price can differ by thousands over five years. A fuel-efficient model with a lower insurance rate may cost far less.
Cheap to buy and cheap to own are not the same thing.
Use tools
Many websites estimate five-year costs by model. Check them against your own driving habits.
Step by step
- List all yearly costs
- Compare at least three cars
- Include insurance quotes
- Estimate resale value
Practical tip
Depreciation is the largest cost for most cars, yet it never shows up on a bill. Check resale values for the models on your list.
Bottom line
Look at five-year costs before you fall in love with a car.
Specifications, prices and rules change. Confirm current details with the manufacturer or the relevant authority before you buy or repair.
