So you’re in the market for a brand new vehicle? Have you saved up all your pennies for a fat down payment, hoping in that way to avoid a nasty financing arrangement that will cost you twice as much in the long run? You’re ahead of the curve, already – or are you? The fact is, if you’ve been thinking only of the initial cost of the vehicle, you just haven’t been factoring in the total cost. So how can you get quickly up to speed again?
Factoring In The Total Cost Of Ownership
Hopefully, you aren’t just now realizing that the total cost of your vehicle is calculated as the amount of money you’ll spend over an average five years of ownership. If so, wow! You’re in for a big surprise! But if you think about it, the concept really isn’t that hard to grasp. After all, you don’t just buy a car and then expect it to look after itself.
The total cost of ownership of any vehicle is, as noted above, calculated over five years of ownership. During that time, you’ll spend x amount of dollars on gas, x amount on basic maintenance (car wash, oil change, brake fluid), and x amount on repair work (in case of an unforeseen fender bender).
Shoring Up Your Vehicle’s Resale Value
There’s also another factor to keep in mind when considering your total cost of ownership over that projected five year period: The ultimate resale value of your vehicle. You can parrot the same empty cliches concerning the “Blue Book” all you want, but you’re a fool if you try to rely on that so called “Car Bible” to guarantee you a fair deal when it comes time to sell it on Craigslist or trade it in at your local used car dealership.
Are you driving a vehicle that is notorious for its poor resale value? Are you considering purchasing one of these less than stellar choices? If so, you should be aware that you’re practically throwing money away. What’s the point of sweating over your day to day cost of ownership if your vehicle is decreasing in value the entire time?
Put In The Time And Do The Research
It’s an excellent idea to put in the time to research resale value and the total cost of ownership for any vehicle you are contemplating buying. A quick Internet search for “Corolla cost of ownership” could save you a great deal of time, frustration, and -above all- cold hard cash.