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.
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.
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.
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.