How Much Does Your Car Really Cost You?

by Maddi Butler

With gas, insurance, and maintenance to consider, owning a car is an expense that adds up. Owning and driving new cars costs drivers $8,849 a year, according to a study by AAA.

Even if you know what your car will cost you, you can still be surprised in the long run. There are some expenses that you might forget about when you own a car. One of the biggest expenses is depreciation.

Depreciation costs new car drivers more than $3,000 every year. This is almost 40 percent of the cost of owning a new car.

Cars start to depreciate the moment you drive off the lot. A vehicle can lose almost one-third of its value in its first year. However, there is a way to minimize depreciation costs on your vehicle.

When you buy a car, plan to keep it for a long time. Once you own your car, be sure to maintain it. Another thing that will keep your costs lower is buying a pre-owned car. Driving a pre-owned vehicle in good condition keeps costs lower over a period of time.

In 2017, used car sales rose 1.8 percent. New car sales went down by 2 percent. It seems like this idea is already saving drivers some money. Experts predict this trend will continue as drivers turn to used cars to save money.

Whatever you decide to do, be sure to ask questions and read the fine print. Understanding any warranties that come with the car could save you even more money.

Sign up for our FREE newsletter!

Learn more ways to save on your auto insurance.