How Much Your Car Really Costs You?
Posted by Mohit on July 3rd, 2012
Sometimes I think that my Honda Element costs me a fortune. I especially feel this way when I fill the car up with gas. Or when we take it for an oil change. Somehow we always end up with repairs, and, as I call it, despairs. However, I have to admit that our Honda is a good car. We don’t really spend much on it.
How much did you spend on your car last year? This year? Do you keep track? I don’t. I start worrying about the cost when we have problems, or have some repairs coming up. Other than that I don’t worry much about the cost of Honda ownership.
According to AAA’s Daily Fuel Gauge Report the average price of gas in Utah as of July 2,2012 was $3.59. I have to admit that it is the major expense for us. Every time I fill up the tank, I pay about $40. Our Honda Element gets excellent mileage, therefore we fill up the tank twice a month. Total annual cost: $960.
We have full insurance coverage because we have a car loan. However, we have really good insurance (or so we think.) Our premium on Honda is $40 a month. Total annual cost: $480.
We had to do some repairs this year. We did update a few worn out parts, filters and belts. Our maintenance cost this year has been about $300. Let’s hope this is the end of it.
Interest on Car Loan
We got a five year car loan. Let me tell you that if we could we would have tried to avoid getting a car loan. But we had to get a loan. I wish it would be for at least
three years and not five. But we did what we did, and our total interest cost in 2011 was $400.
Registration and Taxes – total annual cost $150.
Total Annual Cost of Owning Honda – $1,850.
The Honda that we bought a few years ago, was a used car. Some people prefer new cars, some, like us, go for used cars. We shopped around quite a bit before pulling the trigger, looking both at local dealerships and on used car sites like Evan Halshaw. I believe that if you shop around, do your research, you can find a good used car that is three to five years old. I look at a depreciation effect when it comes to new cars. Some new cars lose almost 40% of their value when you drive it off the lot.
We are planning to drive our Honda for a long time, probably until we run it into the ground. We hope that the cost of owning our Honda will go down eventually. We will pay off the loan, reduce our insurance premiums, and unless our maintenance cost significantly go up, we should be able to reduce our total annual ownership cost.
Six Things We Are Doing To Reduce Our Honda’s Running Cost
- We are trying to use it less.
- We are trying to use public transportation more.
- We are trying to walk more.
- We are regularly checking tires for low pressure.
- We are trying to maintain a regular car maintenance schedule.
- We are trying to pay off our car loan.
Do you know how much your car really cost you?
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