Afforable monthly payments are a big topic of discussions in the automobile industry.
“The monthly payment is very important,” so that buyers can stay within their monthly budget, says Paul Ballew, General Motors’ general director of market analysis.
However, for consumers the monthly payment, which covers the principal and interest on the loan or lease payment, is only the start of the calculations on how much it costs to own vehicle, whether it is new or used.
What it costs to own a vehicle includes variables such as the expenses for fuel, insurance, maintenance costs and parking. Runzheimer International is a Rochester, Wis., firm that keeps track of cost and management of business fleets.
Some costs are easier to uncover than others. The federal government, for example, requires carmakers to list the average annual expenditure for fuel on the sales sticker.
The total cost for major items such as fuel, registration and taxes, repairs and maintenance and insurance can average more than $3,500 per year on a standard four-door sedan with a 6-cylinder engine, according to the Runzheimer data.
Insurance expenses are based, among other things, on the model and age of the vehicle as well as how far it is driven every year, says Jeannine Fallon, public relations director for Edmunds.com, which also tracks cost of ownership information.
“Insurance and fuel costs generally stay constant for the life of the vehicle. So do taxes and fees. But maintenance and repair costs tend to increase,” Fallon said.
The costs of wear items such as tires and windshield wiper blades figure into routine maintenance expense, which vary by vehicle. On such upscale models as Audi and BMW, these items are covered by customer care policies.
Generally repairs on new vehicles are covered by a warranty that varies by manufacturer but generally covers the first three years or 36,000 miles of driving.
Another hidden expense can be parking, Fallon said.
Parking costs vary by city but commuters into Chicago’s Loop can pay more than $200 per month.
Fallon also says consumers have to consider the cost of depreciation. Depreciation is the largest single expense involved in owning a new vehicle, according to Runzheimer.
Depreciation is the difference between what you pay for the car and what the vehicle would fetch on the open market if you sold it later. The rate of depreciation is greatest during the first year but tends to slow down as the vehicle gets older, Fallon said.
Here are projected ownership costs for selected 2003 passenger cars and light trucks as compiled by Runzheimer International, a Wisconsin firm that keeps track of vehicle costs:
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Annual costs for cars
Car Cyl. Displacement Operating Fixed Total
BMW 540I 8 4.4 liters $3,370 $12,589 $15,959
Lincoln Town Car Executive 8 4.6 liters $3,450 $12,170 $15,620
Cadillac DeVille 8 4.6 liters $3,360 $12,172 $15,532
Buick Park Avenue Ultra S.C. 6 3.8 liters $3,350 $11,579 $14,929
Oldsmobile Aurora 8 4 liters $3,360 $10,027 $13,387
Buick LeSabre Limited 6 3.8 liters $2,730 $ 8,952 $11,682
Mercury Grand Marquis GS 8 4.6 liters $3,120 $7,463 $10,583
Nissan Maxima GXE 6 3.5 liters $2,870 $7,658 $10,528
Dodge Intrepid SE 6 2.7 liters $2,850 $7,035 $9,885
Buick Century Custom 6 3.1 liters $2,710 $6,952 $9,662
Ford Taurus SE 6 3 liters $2,740 $6,656 $9,396
Chevrolet Impala 6 3.4 liters $2,760 $6,553 $9,313
Chevrolet Malibu 6 3.1 liters $2,690 $6,174 $8,864
Pontiac Grand AM SE 4 2.2 liters $2,440 $6,422 $8,862
Toyota Camry LE 4 2.4 liters $2,490 $6,077 $8,567
Honda Accord LX 4 2.3 liters $2,470 $5,863 $8,333
Chevrolet Cavalier 4 2.2 liters $2,370 $5,832 $8,202
Ford Focus SE 4 2 liters $2,330 $5,446 $7,776
Honda Civic LX 4 1.7 liters $2,110 $5,169 $7,279
Toyota Corolla CE 4 1.8 liters $2,070 $5,107 $7,177
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All four-door vehicles are similarly equipped, including automatic transmission, power steering, power disc brakes, air conditioning, tinted glass, AM/FM stereo, body-side moldings, cruise control, left-hand remote control mirror, rear window defogger, intermittent windshield wipers, anti-lock brakes and tilt steering.
Costs include operating expenses (fuel, oil, maintenance & tires), fixed expenses (insurance, depreciation, financing, taxes and licensing) and are based on a 36 month/60,000 mile retention cycle.
%% Annual costs for light trucks
Light truck Cyl. Displacement Operating Fixed Total
Chevrolet Tahoe 4×4 8 4.8 liters $3,380 $9,171 $12,551
Ford Econoline E-350 XL Super Duty 8 5.4 liters $3,730 $8,180 $11,910
Ford Explorer XLS 4×4 4dr 6 4 liters $3,250 $8,107 $11,357
Jeep Grand Cherokee Laredo 4×2 6 4 liters $3,330 $7,849 $11,179
Chevrolet Blazer LS 4×4 4 dr 6 4.3 liters $3,230 $7,553 $10,783
Ford Windstar Standard LX 6 3.8 liters $2,940 $7,767 $10,707
Dodge Caravan SE passenger 6 3.3 liters $2,850 $6,888 $9,738
Jeep Liberty Sport 4×2 4-dr 6 3.7 liters $3,120 $6,584 $9,704
Chev. Silverado 1500 4×4 6 4.3 liters $3,180 $6,519 $9,699
GMC C1500 Sierra 6 4.3 liters $3,220 $6,252 $9,472
Ford 150 XL 4×2 pickup 6 4.2 liters $3,100 $6,273 $9,373
Dodge Ram 1500 4×2 pickup 6 3.7 liters $3,320 $6,026 $9,346
Ford Ranger XL 4×2 Pickup 4 2.3 liters $2,640 $5,315 $7,955
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Costs include operating expenses (fuel, oil, maintenance and tires), fixed expenses (insurance, depreciation, financing, taxes and licensing) and are based on a 36-month/60,000-mile retention cycle.
These are the average costs to maintain a 2003 vehicle by city, according to Runzheimer International, which specializes in calculating such costs. The cents-per-mile maintenance costs shown below are based on a typical intermediate-size vehicle represented by the 2003 Ford Taurus SEL sedan driven 15,000 miles per year and retained for four years. Costs cover normal and preventive maintenance.
%% Most expensive
Location Maintenance costs per mile
San Francisco 6.79 cents
New York 6.38 cents
Hempstead, N.Y. 5.62 cents
Honolulu 5.49 cents
Chicago 5.21 cents
Miami 5.17 cents
Newark, N.J. 5.13 cents
St. Louis 5.13 cents
Stamford, Conn. 5.09 cents
Sacramento, Calif. 5.01 cents
Seattle 5.01cents
Least expensive
Location Maintenance costs per mile
Bismarck, N.D. 3.56 cents
Casper, Wyo. 3.64 cents
Richmond, Va. 3.68 cents
Lubbock, Texas 3.76 cents
Billings, Mont. 3.80 cents
Omaha, Neb. 3.80 cents
Henderson, Ky. 3.88 cents
Jackson, Miss. 3.88 cents
Burlington, Vt. 3.92 cents
Evansville, Ind. 3.92 cents
Montgomery, Ala. 3.92 cents
Portland, Maine 3.92 cents
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