| ="body"> | | | | that number. At 4.10 a gallon, which was the |
| For some people, cars are a necessity. They need | | | | height of the summer 2008 gas price increases, |
| a car to get to and from work, and other places. | | | | that number goes up to $2,050.00 dollars a year |
| But for many others, cars are certainly not a | | | | spent on gas alone. We all know it hurts when |
| requirement. People who live in big cities, for | | | | $50.00 does not even fill up your gas tank. |
| example, often don't need a car, but own a car, | | | | Repair and Maintenance: Then there is the regular |
| even if they're only using it every once in a while. | | | | scheduled maintenance for a car. This number is a |
| With the economic problems facing us today and | | | | bit harder to pin down since so many factors |
| everyone trying to cut back on spending, one has | | | | must go into keeping a car in safe running |
| to ask, "Do I really need a car?" Granted owning | | | | condition. Baring the kinds of repairs that we all |
| a car or two is part and parcel of the American | | | | dread, like your car's drive shaft falling off the |
| Dream, but so is paying your mortgage, having a | | | | bottom of your car at the worst possible time; an |
| decent paying job and putting food on your | | | | oil change, fluid upkeep, and tires happen to all of |
| families table. With these uncertain economic | | | | us on a regular basis. Add in the somewhat |
| times, if one aspect of your American Dream is | | | | semi-annual break change, mufflers and battery |
| preventing you from achieving another more | | | | replacement and the cost of average car |
| important goal, then maybe it is time to | | | | maintenance falls at about $340.00 to 650.00 a |
| reprioritize. Yes, we understand that you waited | | | | year. |
| your whole life to have that shiny, brand new car | | | | Vehicle related licensing, registration and other |
| of your dreams, but remove your emotions of | | | | fees: One needs to add in the costs of licensing |
| out of the equation and let's look at the facts | | | | and inspection a vehicle as well if we are going to |
| One way to decide this question is to look at the | | | | be realistic here. Inspections have a range of |
| factors that add up to how much your car really | | | | prices on them depending on whether or not |
| costs you per year. Whether you drive a total | | | | emissions'; testing is involved in your state. |
| beater, or a nice, expensive, luxurious gas-guzzler; | | | | Registration and then the cost of keeping your |
| selling your car will certainly save you money. | | | | driver's license too must be included. As |
| That's because in nearly all instances, mass transit | | | | registrations don't happen every year for |
| and other forms of commuting are cheaper than | | | | everyone, the cost still comes out to between |
| owning, maintaining, and fueling a car. We need to | | | | $200.00 and 690.00 per year; if you don't get any |
| look at all the costs involved in car ownership. | | | | tickets. |
| - Car Insurance | | | | Car purchase, loan payments and finance charges: |
| - Cost of Gas and Fuel | | | | And then, we can get to the actual cost of the |
| - Maintenance and Repair | | | | car itself! Granted one can buy an old clunker out |
| - Vehicle related licensing, registration and other | | | | of the paper for $1,500.00, but if you are looking |
| fees | | | | at the cost of a new car then based on 2006 |
| - Car purchase, loan payments and finance | | | | prices, the average import price tag was $36,627 |
| charges | | | | while the domestic new car price tag hovered in |
| - Parking, tolls, etc. | | | | at $22,855. Average out the two, we have a |
| Insurance: Automobile insurance costs are huge | | | | basis of $29.741 to jump our numbers off of. |
| and keep on going up. Drivers pay more for auto | | | | That adds up to quite a hunky monthly car loan |
| insurance in states with significant urban | | | | payment and with credit rates going through the |
| populations, greater traffic density and a higher | | | | roof, quite a bit of your money paid out in finance |
| cost-of-living, though they are the people that are | | | | charges as well. |
| least required to own a car. Tort liability and other | | | | For example, a new car priced out at 29,000 with |
| auto laws as well as each state's auto body repair | | | | a $7,000 down payment /trade in, an average |
| labor costs, liability coverage requirements and | | | | tax of 7% and interest rate at the current US |
| theft rates also have an impact on auto insurance | | | | average of 6.58%, the monthly payment will be |
| prices. While the average annual cost for auto | | | | $549.94. That's $6,599.28 a year here, folks. |
| insurance premiums nationwide for 2007 was | | | | Parking: Without getting too insane about figuring |
| estimated at $847 per policy, the top five most | | | | in the cost of your home and renting out the |
| expensive cities (Detroit, Philadelphia, Newark, Los | | | | driveway or garage for your car, we can just |
| Angeles, and New York City) have rates from | | | | look at tolls and parking costs on a major |
| $5,162 to $3,127 per year. Even the most | | | | metropolitan city basis. Average daily rates for |
| insurance friendly city, Roanoke Virginia, come in | | | | parking increased 3.5% from 2006 to 2007 |
| at $758.00 per year. That's a nice chunk of | | | | bringing the cost of daily parking in some areas as |
| change. | | | | high as $32.75 per day! That means, even if you |
| Gasoline: Granted gas has decreased to date to a | | | | just pay for parking on weekdays when you go |
| national average under $2.50 a gallon, but the | | | | to work, you can be spending over $8,500.00 just |
| average American still uses 500 to 600 gallons of | | | | to put your car someplace when you are not |
| gasoline every year. As the average fuel | | | | using it! |
| economy of new cars and light trucks declined | | | | The grand total cost of owning a car in the US is |
| from a high of about 26 miles per gallon in 1988 | | | | $19,799.00 per year. |
| to less than 24.5 mpg in 1999 due to larger | | | | Taking the midrange amounts of the above |
| vehicles, more horsepower, and increased sales of | | | | calculations and adding them all up, it truly is |
| sport utility vehicles (SUVs) and trucks, our | | | | almost twenty thousand dollars a year to keep a |
| consumption of gas has gone up with the price. | | | | new to almost new mid range vehicle on the road |
| Now almost 50% of the passenger vehicles on | | | | in a city in the United States. If you keep that car |
| the road are SUVs and light trucks that do not | | | | for 5 years, then you are spending almost 100 |
| have to meet the higher fuel economy standards | | | | thousand dollars for a car, something that can hit |
| of cars. | | | | a tree and be gone in an instance. For many |
| Depending on where in the country you live, and | | | | people that's a new house, or some really great |
| depending on the gas prices, as the average | | | | vacations, or your child's college education! |
| vehicle is driven more than 12,000 miles per year | | | | With a number like that staring you in the face, |
| today that adds at least another $1,250.00 to the | | | | you can really take a good hard look at your |
| cost of owning a car. If we happen to see | | | | emotional ties to your automobile and decided for |
| another rise in prices as we did in the early | | | | yourself; Do I really need to own this car? |
| summer of 2008, then you can just about double | | | | |