The car payment is only part of what a car costs. Fuel, insurance, servicing and the value the car loses every month often add up to more. Add up your own costs with the total cost of ownership calculator.
Example: a $30,000 car
| Cost | Per month | Assumption |
|---|---|---|
| Loan payment | $489 | $5,000 down, 6.5% over 5 years |
| Fuel | $117 | 1,000 miles at 30 mpg, $3.50 a gallon |
| Insurance | $150 | Example; varies a lot by driver and area |
| Servicing and tyres | $80 | Spread over the year |
| Registration and fees | $20 | Spread over the year |
| Total | $856 |
So the real cost here is about 75% more than the payment alone. These are example figures; your insurance and fuel costs may be very different.
The hidden cost: depreciation
Even after the loan is paid off, the car keeps losing value. If a $30,000 car is worth $15,000 after five years, it has cost you $250 a month in lost value. Check yours with the depreciation calculator.
Frequently asked questions
What share of my income should a car take?
A common guide is keeping all car costs under 15–20% of take-home pay. See how much car you can afford.
Is a used car cheaper per month?
Usually: a smaller loan and slower depreciation, though repairs may cost more. Compare both in the calculator above.
Related: Fuel cost calculator · Car loan calculator