Most People Don’t Want to Know the Real Cost of Owning a “Melting” Car

SITUATION:
People who buying a car do not seriously consider that the total cost of operating, maintaining, and servicing the vehicle during a user life period of 5 years will exceed the amount paid for the car or truck. Dealers and OEMs seek not to reveal this awareness as it would impact vehicle sales.

SIGNIFICANCE:
The available cost of ownership computation tables in several Internet Buying sites generally render a total cost over a 5 year period to be in excess of the original cost of the vehicle. Or an Chevrolet SUV that costs $60,000 will cost over $60,000 to operate and support. Over $25,000 for depreciation alone or as much as $400-to $500 per month or $15 to $20 each day.

SOLUTION:
A car is a block of ice and it is losing market value or “melting” at a rate of at least 2% of its original cost every month. Many who have previously sought to own a vehicle now lease with the realization there biggest cost of ownership is depreciation and that vehicle operating cost can equal or exceed the loss of value over 5 of years. Others who prefer owning seek to “own” a vehicle asset that retains value of time and minimizes the essential investment in operating expenses.

STATS:
287.3 million registered vehicles in the U.S. in 2020: 9% of households have 2 or more vehicles; The average monthly payment on a new car was $523 or more.

SOURCES:
Cost Models and the Cost of Vehicle Owner ship: http://www.kbb.com; http://www.edmunds.com

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