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What’s the True cost? New vehicle vs 5-year-old vehicle cost of ownership

The idea is simple, the longer you own a vehicle, the less it costs you. At least to a certain extent. Don’t get me wrong, for me buying a new car gave me a sense of pride and importance. I felt that a new car was a status symbol and it is. Now 3 years into my hefty car payments, my image and thoughts have changed greatly. The realization of how much money I was throwing away was shocking. Keep these numbers in mind, the average car payment is $523 a month for 5 years, and the average driver puts on 15,000 miles per year. I challenge you to look at your own situation and make the best decision. On the other hand, my daily driver is a 12-year-old Jeep, I have no payment and I love it. Especially after seeing the savings. Now did I have to put some money into it, yes. However, as you will see below, this type of investment pays off greatly.

2019 Avg New Car           Year 1                    Year 5                    5 Year total

Depreciation                      3941                       2236                       $12,680

Taxes and Fees                 2098                       101                         $2502

Payment                              6276                       6276                       $31,380

Fuel                                       1266                       1425                       $6722

Insurance                            755                         866                         $4048

Maintenance                     56                           1465                       $3240

Repairs                                0                              323                         $637

Total                                      $14,392                 $12,692                 $61,209

2013 Avg Used Car          Year 1                    Year 5                    5 Year Total

Depreciation                      2841                       817                         $6765

Fees                                      101                         101                         $505

Fuel                                       1447                       1629                       $7683

Insurance                            749                         843                         $3976

Maintenance                     809                         1122                       $4412

Repairs                                 340                         624                         $2358

Total                                      $6,287                   $4,126                   $25,699

Now these are national averages I got from Edmunds, your vehicle and situation could be very different. Even with each situation being different, the savings is shocking. For us in the automotive repair industry this is a great stat and for you consumers this is even better! I recommend you find a good and honest repair shop to help you maximize the life on your vehicle. If you are in need of a good, honesty repair shop give us a try. American Tire and Automotive.

Brandon Jones, AAP Owner of American Tire and Automotive

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