Hi All,
The average American spends more than 100 hours commuting. So, like most people you are probably trying to save money on your transportation expenses. Here is a good way to go about getting started. When you own a car you have to pay for various expenses. Among these are:
1) The purchase price
2) Maintenance
3) Repairs
4) Gas
5) Insurance
6) Taxes
7) Registration and license plate fees
8) Accessories
9) Loan payments
For each of these categories, add up what you think the yearly expenses will be. Use whatever numbers you think are appropriate. Then total the figures up and multiply by how many years you think you will own the car. The final figure is your cost to own the car.
This is a good exercise for a couple of reasons.
First, for buyers its a better reflection of the real cost of ownership. If you are planning on buying a car, your total expenses can be far more than just the amount you paid to buy the automobile. Sometimes a used car can be less expensive in terms of its purchase price, but cost a LOT more in gasoline and repairs.
Second, this can be a good way to find savings. For example you probably don’t need that $5.99 pair of fuzzy dice or $1.99 air freshener. Or you may find a long term savings in using regular instead of premium gasoline.
The main point here is when you know how much your car costs, you can make better decisions about to manage these costs.
Best,
James
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