This is the estimated expense of the two types of maintenance: scheduled and unscheduled. Cost estimates are based on the current one-year moving average of self-service prices in your state, using regular unleaded gasoline for vehicles whose manufacturers require regular premium unleaded gasoline for vehicles whose manufacturers recommend or require premium or diesel fuel for diesel vehicles. ![]() This expense is based on the revised EPA mileage ratings, assuming consumption consists of 45% highway and 55% city driving and that the vehicle is equipped with the transmission that is standard equipment for that vehicle. Note: The state sales/use tax rate that we use includes the average local and county taxes assessed in that state. These taxes and fees are often based on a percentage of the purchase price and generally decrease as the vehicle ages and loses its value. This consists of the base sales (or use) taxes, license and registration fees in your state, and gas-guzzler tax if applicable. Note: Even if you do not finance your vehicle, the inclusion of financing cost in determining True Cost to Own® is still appropriate because it reflects the estimated "opportunity cost" (i.e., the amount you may earn) if you were to invest the Purchase Price instead of using it to purchase the vehicle. The interest rate used is the prevailing rate that banks and other direct automotive lenders are currently charging consumers in your geographic region who have above-average credit scores. This is the interest expense on a loan in the amount of the Total Cash Price, assuming a 10% down payment and a loan term of 60 months. Factors that will affect your rate include your age, marital status, credit history, driving record, and the garaging address of your vehicle. While this information is specific to vehicle make, model, model year and body type, your personal information is not taken into consideration and could greatly alter the actual premium quoted by an insurer. The premium has been determined based on annual premium data for defined driver profiles and coverages (liability, comprehensive and collision) from a major national insurer. This is the estimated average annual insurance premium in your state. We estimate the resale value assuming the vehicle will be in "clean" condition, will be driven 15,000 miles per year, and will be sold to a private party. The purchase price employed is the vehicle's Total Cash Price minus any taxes and fees included in that amount. This is the amount by which the value of a vehicle declines from its purchase price to its estimated resale value. (However, we do not account for other types of cash rebates or incentives because of the variability of those offers and their eligibility requirements.) For used cars, the Total Cash Price shown is the sum of the vehicle's private-party value price in "clean" condition plus typically equipped options and base tax and fees assessed by your state. Explanation of True Cost to Own® Terms Total Cash Priceįor new vehicles, the Total Cash Price displayed is the vehicle's market value price plus typically equipped options, destination charge, base tax and fees assessed by your state, and, if applicable, gas guzzler tax, less any widely available manufacturer-to-customer cash rebates. We also take into account any applicable federal tax credit. Using proprietary formulas, we calculate the 5-year costs for the seven cost categories that make up the TCO® (car depreciation, insurance, financing, taxes & fees, fuel, maintenance and repairs). ![]()
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