The total cost of owning a car can be determined by several different factors. While the price you pay for the car is certainly a large factor, it’s not the only cost that needs to be considered. You must also consider how much it costs to maintain, insure and fuel the car.

Why Factoring These Other Costs Is Important

Why do these other costs matter when you’re determining the total cost of owning a car? Let’s say that you spent $1,000 putting new brakes on a car that you paid $500 for. With that additional cost, you have now effectively paid $1,500 to provide yourself with a vehicle. If you pay $500 a year over five years to insure the car, that will add up to an additional $2,500 to keep your car on the road. If you spend $100 a month on gas for your car, you will end up spending an extra $1,200 per year.

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