Total Cost of Ownership Calculator
Calculate the complete cost of vehicle ownership including purchase price, depreciation, fuel, insurance, maintenance, registration, and resale value.
What costs are included in total cost of ownership?
True vehicle ownership costs: Purchase price/loan payments, depreciation (largest cost - 40-60% of TCO), fuel (15-25% of TCO), insurance (10-20% annually), maintenance ($500-1,200/year), repairs (increases with age), registration/fees ($200-500/year), taxes, parking/tolls. Most buyers only consider monthly payment, ignoring $10k+ in annual ownership costs. Luxury cars have 2-3x higher TCO than economy cars despite similar payments. Always calculate 5-year total cost.
How much does a car really cost per year to own?
AAA estimates (2024): Small sedan $7,000-8,500/year, Medium sedan $9,500-11,000/year, Large sedan/SUV $11,000-13,000/year, Luxury vehicle $15,000-20,000/year, Electric vehicle $8,000-10,000/year (lower fuel/maintenance). Breakdown: Depreciation 40%, fuel 20%, insurance 15%, maintenance 10%, fees/taxes 10%, repairs 5%. Reality check: $30k car costs $50k+ over 5 years when everything included. Most expensive year: Year 1 (depreciation + full insurance).
Which cars have the lowest total cost of ownership?
Lowest 5-year TCO winners: Toyota Corolla/Camry (reliable, cheap maintenance, holds value), Honda Civic/Accord (similar to Toyota), Mazda3/CX-5 (good value, reliable), Subaru Outback (holds value, loyal market), Lexus ES/RX (reliable luxury, lower maintenance than German). Highest TCO: German luxury (BMW, Mercedes, Audi - expensive repairs), Land Rover (worst reliability), Maserati/Alfa Romeo (depreciation + repairs). Buy used luxury 3-4 years old to avoid worst depreciation.
How does depreciation affect total cost of ownership?
Depreciation is the biggest cost, often 50-60% of TCO. Timeline: Year 1 (20-30% loss), Year 3 (40-50% loss), Year 5 (60% loss). Example: $40k new car worth $24k after 3 years = $16k depreciation, $444/month "invisible" cost. Slow depreciators: Toyota Tacoma (70% value at 5 years), Jeep Wrangler (65%), Honda Civic (55%). Fast depreciators: Luxury sedans (35% value at 5 years), electric vehicles except Tesla. Buying 3-year-old car avoids steepest depreciation.
Is it cheaper to buy or lease when considering total costs?
Buying almost always cheaper long-term. Lease vs Buy 6-year comparison: Lease $400/month × 72 months = $28,800, own nothing. Buy same car: $30k purchase, $10k resale = $20k cost + interest, but you own vehicle. Leasing advantages: Lower monthly cost, always under warranty, new car every 3 years. Leasing disadvantages: Mileage limits (15k/year penalty), no equity, perpetual payment, can't modify. Buy if keeping 6+ years, lease if want new car every 3 years and drive under 12k miles/year.
How much should I budget for car maintenance and repairs?
Maintenance costs by age: Years 0-3 ($500-800/year - mostly oil changes, tires), Years 4-6 ($1,000-1,500/year - brakes, battery, fluids), Years 7-10 ($1,500-2,500/year - suspension, major services), Years 10+ ($2,500-4,000/year - aging component failures). Luxury cars 2-3x higher: BMW oil change $150 vs Honda $40, BMW brakes $1,200 vs Honda $400. Budget 3-5% of car value annually for maintenance. Create emergency fund for unexpected repairs - transmission/engine $3,000-7,000.
How do insurance costs vary in total cost of ownership?
Insurance factors: Age (under 25 pays 2-3x more), gender (young males highest), location (urban $2,000+/year, rural $1,000/year), vehicle type (sports cars, luxury, high theft risk pay more), coverage level (liability only $800/year, full coverage $2,000+/year), driving record (one accident +40%, DUI +80%). Cheapest to insure: Honda CR-V, Subaru Outback, Jeep Wrangler. Most expensive: Tesla Model X, Dodge Charger, sports cars. Shop quotes annually, bundle with home insurance, raise deductible to $1,000, maintain good credit for 20-30% savings.