Text transcript: Money smarts in a flash
The real cost of transportation - Part 2: What it costs to own a car
Finally got your licence? Bet you'd love to have a car and all the freedom and independence that come with it! But whether you're leasing or buying, there are lots of extra expenses to consider. Like what, you ask?
Costs to budget for:
. Gas. Your expenses will vary depending on:
- The make and model of your car
- How far you're travelling and what kind of driving you're doing (city or highway)
- Gas prices (the average price in 2014 was $1.34/L).
- Depreciation. Depreciation is calculated using the purchase price of your car, its current value and how many years you've had the car.
- Licence and registration fees
Used car New car Leased car
Model year 2009 2014 2014
Mileage 60,000 km None None
Purchase price $10,925 $20,155 $17,515
Number of monthly
payments 48 48 48
Interest rate 5.99% 1.9% 3.9%
Monthly payment $256.52 $436.39 $280.19
At the end of your
you'll be: The owner The owner On foot, because
of the vehicle of the vehicle you'll have to return the vehicle.
At the end of your lease, you'll
have the option to buy the car, so
be ready to take out a loan or dip
into your savings if you want to
The figures cited in this infographic are based on studies conducted in the United States and Canada (specifically, Quebec).