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If you own a car, you know that it costs quite a bit to keep. Exactly how much it costs may, however, surprise you. According to a new book, "What Your Car Really Costs: How to Keep a Financially Safe Driving Record," even a single average standard-sized sedan will put you back over 1/4 of a million dollars over your lifetime. A larger sedan will take close to $350,000 out of your pocket over your lifetime. If your family happens to have two or three cars the costs are significantly more. The same is true if you purchase "luxury" cars on credit or trade in your car every two or three years.
According to the American Institute for Economic Research (AIER) book, you will spend more on your car on virtually everything else in your life besides food, shelter and taxes. The cost calculations for the car cost over a lifetime include fuel, insurance, license and registration fees, maintenance, repairs and the cost of purchasing the vehicles.
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According to the book, many people have only a vague idea of the true cost of owning and operating a car during their lifetime, especially those who are younger. Understanding the true cost is important because the more money that is spent on your car, the less money you will have for other needs.
The research found that typically, Americans spend double the amount on their car as they contribute to their pensions and Social Security each year. They also only spend one-forth on out of pocket health insurance costs and one-forth on education as what they spend on their car.
According to the American Institute for Economic Research (AIER) book, you will spend more on your car on virtually everything else in your life besides food, shelter and taxes. The cost calculations for the car cost over a lifetime include fuel, insurance, license and registration fees, maintenance, repairs and the cost of purchasing the vehicles.
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According to the book, many people have only a vague idea of the true cost of owning and operating a car during their lifetime, especially those who are younger. Understanding the true cost is important because the more money that is spent on your car, the less money you will have for other needs.
The research found that typically, Americans spend double the amount on their car as they contribute to their pensions and Social Security each year. They also only spend one-forth on out of pocket health insurance costs and one-forth on education as what they spend on their car.