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Posts Tagged ‘auto depreciation’

Average Car Now Costs Nearly $9,000 Annually to Keep Running

But not everything is going up in price, finds new study.

by on May.04, 2012

That midsize sedan will cost you nearly $9,000 a year to keep fueled, licensed, insured and maintained.

Sure, if money is the object you’ll likely find a dealer offering a $149 lease special on some slow-selling model.  But just because you get off cheap up front doesn’t mean you’re in for a bargain the rest of the way.  The fact is, buying, owning and operating a car is expensive – and getting more so every year.

And that’s not just because of the cost of fuel, which have risen an average 14.8% over the last year.  The cost of replacement tires have jumped 4.2%, according to the 62nd annual “Your Driving Costs” survey from AAA.  And insurance has gone up an average 3.4%.

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Overall, there’s been a less extreme 1.9% increase in the cost of auto ownership since last year, reports the AAA, which works out to $8,946 per annum when you work in that monthly payment, fuel, maintenance and insurance fees.

“The average driving cost for 2012 is up due to relatively large increases in fuel and tire costs, and more moderate increases in other areas,” said John Nielsen, AAA director of Automotive Engineering and Repair. “Those increases were offset by a decrease in depreciation.”


Dodge Challenger R/T Tops List of Cars Holding Their Value

Looking for cars, trucks and crossovers with maximum trade-in power?

by on Jun.27, 2011

The 2011 Dodge Challenger R/T is the current model with the lowest anticipated 1st-year depreciation.

Sure, if you’ve got the money in your bank account, invest in that rare Bugatti Royale.  And an original, mint-condition Ferrari Testarossa isn’t a bad way to watch your money grow, either.  But for the average automotive buyer, the economic realities are significantly less positive: the moment you drive off the dealer lot you’re likely to start losing a significant chunk of your investment.

According to a AAA study, you’ll lose nearly $4,000 a year on depreciation with the average vehicle, much of that weighted to the first year after purchase.  A separate study by Consumer Reports projects depreciation will account for 46% of the money you’ll spend over the first five years.  But the folks at NADAguides stress that not all models lose their value equally.  Some, in fact, barely depreciate at all during the first year.

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Perhaps surprising to some, the current model most likely to hold its value is the 2011 Dodge Challenger.  Mopar’s big muscle car is expected to lose just 8% of its value after 12 months of ownership, according to the NADAguides Car Buyers Market Report, which is comprised by the National Automobile Dealers Association.