Understand How Much It Costs to Own a Vehicle

JERSEY CITY, N.J. - May 6, 2014 - PRLog -- What is Safecar.info?

This is a magazine specializing both in the law and politics of car safety and in the current practice of car insurance. It aims to offer a blend of information, opinion, and helpful advice. It also campaigns on issues where the editor feels there’s a need for change.

With this infographic at http://www.safecar.info/real-cost-of-vehicle-ownership-infographic/, Safecar.info aims to explain how to calculate the cost of owning a vehicle. Too many people assume it is a simple matter of finding the lowest sticker price on the chosen model and then waiting to see what the secondhand value is when it comes to trading the vehicle in.

What are the main factors to consider?

The starting point is the amount available to spend. This will usually be cash plus an amount to be borrowed. Now the question is what represents the best value for those dollars.

•          Sales tax — if the state has this tax in place, this is money lost the moment the buyer signs the purchase agreement.

•          Interest and administrative fees on the loan or overdraft used to buy the vehicle provides an annual cost over the years of repayment.

•          Administrative costs to register the vehicle and operate it on the public roads.

•          Car insurance — the annual premium rates can vary significantly depending on your choice of make and model. Spending more to buy a model with a higher safety rating can save thousands on the cost of insurance.

•          Depreciation — some makes and models lose value faster than others so it can make sense to pay more to buy a model that loses less money over the first three to five years.

•          Gas economy — it can make sense to pay more to buy a model that uses less gas. The owner can save more than $1,000 per year by choosing a vehicle that delivers an average of 30 mpg as opposed to 20 mpg.

•          Maintenance and repair costs — buying a model with a broadly written warranty and a strong reputation for mechanical reliability can save thousands of dollars.

What does the editor say?

David Marshall says, “No matter what the government tells us, the recession is still a factor in the lives of many people. We’re all still finding it tough to pay the bills. Now more than ever, we need value for our hard-earned dollars. Since the car is the second most expensive item we’re likely to buy after the home, we need to make wise decisions. That means taking the guesswork out of the choice of make and model to buy. That’s why we’ve taken the decision to publish the infographic now."