The annual cost to own and operate a car can run to nearly $10,0001 — well over 10% of the average after-tax household income.2
Use this worksheet to help you budget for the costs of car ownership.
1. What kind of car will you be buying?
Make and model:
New or used? How old?
2. Estimate your financing costs
What is the estimated price range of the car? (Include extra features, accessories and taxes.)
Cash or loan?
If loan, what is the:
Down payment: $
Amount of loan: $
Monthly installment: $
Tip:Use the Auto Loan Calculator to work out how different car loan payments fit your budget.
Tip:Consider a 6- or 7-year car loan if you need to make the monthly payments more affordable. (But do be aware that you will pay more interest over the life of the loan.)
3. Estimate your monthly operating costs
Tip:Read the Top 10 Secrets to Cheaper Auto Insurance
Licence and registration: $
Tip:Purchasing a fuel-efficient car will help you save money in this area.
Parking — at home: $
Parking — at work: $
Parking — other: $
Maintenance and repairs:
Scheduled service under warranty: $
Additional or unscheduled service and repairs: $
Tip:Read more about how to make operating your car more affordable.