Your car could be costing as much as your rent
A new report reveals the true cost of owning and operating a vehicle in the U.S.
This post comes from Krystal Steinmetz at partner site Money Talks News.
If you're feeling broke at the end of the month and don't know where all your money disappeared to, just take a peek in your garage. Your car could be sucking your bank account dry.
AAA recently released its 2013 Your Driving Costs report (.pdf file), which reveals what Americans are really paying to drive. It showed an almost 2 percent increase in the cost to own and operate a vehicle in the U.S.
If you drive a mid-size sedan, like a Toyota Camry, Chevy Impala or Ford Fusion, you're paying about 60.8 cents per mile, or $9,122 a year. That is based on driving 15,000 miles per year, which is common for American workers. If you drive an SUV, you're paying about $11,600 per year, AAA said.
That's a lot of money. And more than some people pay for rent.
According to a press release from AAA:
"Many factors go into the cost calculation of owning and operating a vehicle," said John Nielsen, AAA director of automotive engineering and repair. "This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile."
Here’s a breakdown of the costs that AAA said drove the 2 percent increase in operating and owning a vehicle:
- Maintenance costs -- up 11.26 percent between 2012 and 2013.
- Fuel costs -- increased 1.93 percent.
- Tire costs -- no change between 2012 and 2013.
- Insurance costs -- rose 2.76 percent.
- Depreciation costs -- increased by 0.78 percent.
If you're looking for a way to trim your car costs, Autoweek recommends following these tips from AAA:
- Bigger isn't better. "Don't buy more car than you need," Autoweek said. You could save about $2,000 per year by purchasing a size down.
- Don't buy new. Cars depreciate by nearly 20 percent in the first year. That's a big hit. Do your homework and consider purchasing a vehicle that holds its value.
- Know your car. Read your car's manual and make sure you're keeping up on its recommended maintenance. Most cars will easily exceed the 100,000-mile mark if you regularly maintain your vehicle.
- Price insurance. Before you buy a vehicle, research the costs associated with insuring it. Depending on the make, model and year of car, insurance costs can fluctuate significantly.
More on Money Talks News:
My very first, brand spanking new, motor vehicle was a 1971 Ford Mach 1 Mustang (fastback) with a 351cu. in. Cleveland engine. Cost: A "whopping" ***$2,800.00*** IN CASH! Money saved during my "fighting" tour in the Vietnam War.
I own a 91 chev that's paid off all it costs me is maint and that's an oil change so this article is way off base, the only time I bought a new car was back in 1986..after that I was done, we pay cash for everything and have zero debit
The sticker prices of new cars are way too high, I wonder if the automakers ever passed on the money they saved from tier two wages,and outsourcing production of parts and whole cars?
And auto insurance premiums are ridiculous in my state, soon only the wealthy and privileged will be able to own cars in this country.
Best way to stay poor is buy a too expensive car as so many who are on limited incomes do. Besides the money lost on the payment, you have higher taxes, insurance (most of the time), and repairs. You now have far less disposable income for bills, entertainment, emergency expenses and nothing to set aside or invest towards your retirement.
Buy cheap, reliable, and take care of it car as IT'S JUST A CAR. Spend that extra money else where for higher quality of life.
Bought new 1986 Toyota truck for $10,000 and it's been my daily diver for 28 years and 420,000 miles. I still have people walking up and asking me if I wan to sell it.
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