Edmunds.com's True Cost to Own® (TCO®) is proprietary data that helps you estimate the total five-year cost of buying and owning a vehicle — including some items you may not have taken into consideration. ... In order to estimate certain mileage-dependent costs, we assume that vehicles will be driven 15,000 miles per year.
When purchasing or leasing a new car, it's important to understand how much that new car is actually going to cost over the long run. Beyond taxes and fees, monthly payments, and any finance charges, new car buyers must also take into account other expenses such as the costs of maintenance, insurance, and fuel.
(I own a 2008 but Edmunds doesn't go back that far for true cost to own). ... The 5 year numbers are based on 15k miles per year, which adds up to 75k over that span.
2020 Accord Sedan Sport 4dr Sedan (1.5L 4cyl Turbo CVT)
| Year 1 | Total | |
|---|---|---|
| Financing | $1,605 | $4,691 |
| Depreciation | $2,285 | $10,146 |
| Fuel | $1,099 | $5,835 |
| True Cost to Own® | $8,053 | $34,167 |
With 100 miles using 34kWh (about 100 MPG) and electricity costing an average of $0.12/kWh, the yearly cost to drive a Tesla Model S 15,000 miles is $612. Compare that to Toyota (TM) Camry's 30 MPG and an average cost of gas of $2.40 per gallon.
After three years, your car's value decreases to 58% of the initial value. After four years, your car's value decreases to 49% of the initial value. After five years, your car's value decreases to 40% of the initial value.
TCO's Weaknesses
The problem with total cost of ownership is that, used alone, it provides a very narrow view of just the costs associated with an application. TCO completely ignores the benefits.
The total cost of ownership looks at the cost of owning an asset long-term by assessing both its purchase price and the costs of operation.
Total cost of ownership is also abbreviated as TCO. TCO is important because it shows you what you actually end up spending when you purchase something. This is true for things that require maintenance such as cars and machinery. For the most part, it's businesses that use TCO.
AFTER FIVE YEARS: After that steep first-year dip, that new car will depreciate by 15–25% every year until it hits the five-year mark. So, after five years, that new car will lose around 60% of its value.
According to AAA, it costs an average of $8,469 to operate the average car for 2017, or about $706 per month.
Regular car maintenance keeps your engine running smoothly and many serious car problems at bay. It's also relatively inexpensive — basic services can start at less than $100 per year — and lowers your total car costs because you'll avoid some more expensive repairs down the road.
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