The real cost of transportation - Part 2: what it costs to own a car

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).
  • Insurance
  • Maintenance
  • 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
Comparison chart (for a Toyota Yaris Hatchback 5DR LE 4A)

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
  monthly payments,
  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
                                                                               keep it! 

The figures cited in this infographic are based on studies conducted in the United States and Canada (specifically, Quebec).
     

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