Miscellaneous Cost

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Introduction

Task

Process

Matrix

Evaluation

Conclusion

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Credits

 

Your monthly car payment and insurance are only two of the costs you will incur as a car owner.  Whether your car is new or used, here are some other costs that needed to be considered:

gasoline

oil changes

car licensing 

registration fees

miscellaneous maintenance

parking fees

Your Task

Determine the True Cost to Own (TCO) of your new car at Edmunds.com.  Calculate the MONTHLY cost of this, and add this number to the Matrix.

Document your visit with a printout of the TCO for the new car you chose.  (TCO's are not available for older vehicles.  Some items, especially depreciation, will not be as pertinent a cost with used vehicles.  Other costs, such as miscellaneous maintenance, may be higher for used vehicles.)

For your used vehicles, consider total costs, and give an approximate monthly cost which includes all of the above.  You will need to estimate your monthly mileage, the miles per gallon your car gets, the current price of gasoline, and the fact that oil changes should be done every 3,000 miles.  Find out the cost of an oil change!  Divide the annual cost of licensing and registration by 12.  Approximate your miscellaneous maintenance charges:  will you be replacing the tires, battery, brake fluid, headlights, etc?  Your older car should have a larger dollar amount for maintenance.  Include any parking fees which may apply to you (school student parking fees, apartment parking fees, parking meters where you work or at events you attend, etc.)  Document your final cost  by itemizing each of the above expenses.  Show each cost and how you arrived at that cost.   Add this number to the Matrix.

Some Questions to Consider When Writing Your Conclusion:

Why is depreciation on a new car considered in the TOC?  Which vehicle seems to give the least cost per mile?  If your mileage doubled in the course of a year, would your miscellaneous costs also double?  Why or why not?