You are Unique

Tell us your driving needs, budgets and personal preferences - What makes you click ? Styling or performance ? Let us know

Find your Dream Car

Sit back and relax. Our Intelligent algorithm analyzes verified owner's feedback from J.D. Power, expert ratings and exhaustive car metrics to decide your dream car.

Ask Our Experts

Now the auto experts are on your finger tips. Your question will get a quick, comprehensive, helpful answer from one our many experts !

You feedback is crucial in helping us grow and improve. Please take a moment to share your comments.

By clicking on Submit you agree with WheelMonk.com Terms & Conditions

 
QUICK CAR SEARCH
">
Read Top J D Power Publications
CONTINUE READING

Total Ownership Cost of your Car

Last Modified: Fri, Apr 29 2016.
Total Ownership Cost of your Car

  • Total Ownership Cost of your Car
  • Total Ownership Cost of your Car
  • Total Ownership Cost of your Car
  • Total Ownership Cost of your Car

Many of us think that buying a car is one time investment, and you end up owning an asset. But did you know that in reality after nearly 5-6 years ownership and even selling your car in used market, you end up spending close to the initial purchase value of car.

Confused! Let's take an example, you buy a car for Rs. 10 Lacs and after 5 years, you sell it for, let's say 6 lacs. You think, not a bad deal, for 4 lacs I have ended up owning and driving a car for nearly 5 - 6 years. But the fact is you end up spending not 4 lacs, but close to 10 lacs only over the total ownership period. Difficult to believe?

Below are some of the cost heads you may not have looked at before -

  • Interest on Loan amount & Interest you forego on down payment - When you buy a new car, you end up making some down payment, which if not spend would have generated interest income for you and on the other side the loan you take from bank, ends up creating interest liability for you
  • Additional Financing Fees - Small but a factor to include. When you get your loan processed, most of the banks charge for processing fees
  • Insurance Cost - Annual amount you spend on insurance of your car
  • Maintenance Spend - Scheduled and Unscheduled maintenance of your car over the period of ownership
  • Depreciation - The value you lose as your car depreciates year over year.
  • Fuel Costs - After all you are going to drive this car
  • Miscellaneous Expenses - Road taxes, Parking costs, tolls, etc.

All these cost end up as high as the difference of your original purchase value and resale value. So next time while purchasing a car, you can look out for some of the features that help you reduce some of the above mentioned cost factors.

Subscribe to WheelMonk's Newsletter

Get Exclusive Automotive Analysis and News from around the Globe




Related Articles



Wheelmonk.com is a user centric car discovery platform which enables prospective car buyers make informed choices based on their preferences. With a deep understanding of the Indian automobile market, accurate vehicle data and extensive repository of verified car owner feedback, Wheelmonk.com aims to become the trusted destination for car buyers and enthusiasts. Wheelmonk.com is a user centric car discovery platform which enables prospective car buyers make informed choices based on their preferences. With a deep understanding of the Indian automobile market, accurate vehicle data and extensive repository of verified car owner feedback, Wheelmonk.com aims to become the trusted destination for car buyers and enthusiasts.

contact@wheelmonk.com    |    +91 80-41114815


Copyright © WheelMonk. All Rights Reserved.