How to Calculate the True Cost of Buying a Car (Beyond the Sticker Price)

When purchasing a car, the sticker price is just the beginning. Here are the key factors to consider when calculating the true cost of owning a vehicle:

1. Purchase Price:
The upfront cost of the vehicle itself.

2. Taxes and Fees:
Include local taxes, registration fees, and title transfer costs.

3. Insurance:
Compare rates for the specific car make and model to estimate annual premiums.

4. Fuel Costs:
Use resources like FuelEconomy.gov to calculate yearly fuel expenses based on your driving habits.

5. Maintenance and Repairs:
Budget for routine services like oil changes, tire replacements, and unexpected repairs, especially for older vehicles.

6. Depreciation:
Estimate how much the car will decrease in value over time, especially for newer models.

7. Financing Costs:
If financing the purchase, factor in loan interest rates and total repayment amounts.

True Cost Example:
A GHc146,844 car might ultimately cost GHc183,555 or more after taxes, fuel, and maintenance within the first year of ownership.

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