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Total Cost of Ownership

Total cost of ownership (TCO) can cost the most money over the life of a car and is something that really should be accounted for when buying a new car. Total cost of ownership over five years is determined by six factors; deprecation (48%), fuel (24%), interest (11%), insurance (10%), maintenance and repair (4%), and tax (4%). The car with the lowest cost of ownership over five years is the Toyota Prius C Hybrid at $5,000 and the highest is the BMW 750Li at $21,500.

American cars dominate the highest TCO category taking 29 out of 46 spots arranged by different categories of cars. On the other hand American cars only accounted for 12 of the lowest with Ford and Chevy both having three. Toyota had the highest number of cars with the lowest TOC with ten. Some cars with low numbers were because of strong manufacture warranties like the BMW X3 who’s TCO was $279 during the warranty coverage but after it expired skyrocketed to $1100 (consumerreports.org).

(Total Cost of Ownership)