7
True ownership cost
- Thread starter \w/
- Start date
cb1111
Newbie
- Location
- Virginia, USA
3 meeeeelion dollars?
These ownership cost calculations are useless. How many miles do you drive a year? What are your insurance costs?
Calculate it yourself. You can get depreciation from lease residuals), you know what your insurance costs and what gas costs. You know how many miles you drive.
These ownership cost calculations are useless. How many miles do you drive a year? What are your insurance costs?
Calculate it yourself. You can get depreciation from lease residuals), you know what your insurance costs and what gas costs. You know how many miles you drive.
^^^^ +1
Frankly, if you're at the point where you need to worry about it, you can't afford it.
vj123
Autocross Newbie
- Location
- The Detroit
- Car(s)
- 19 & 16 GTI - sold
I keep a track of the expenses but never calculated the true ownership cost which includes fuel and and other minor expenses as well.
southpawboston
Drag Racing Champion
- Location
- Somerville, MA
The biggest contributors to cost of owning are maintenance/repair costs and depreciation, with the former being the biggest contributor in the long haul (10 years, for example), while the the latter has the biggest contributor in the short term.
When I traded my Mazda3, it was four years old and had 44,000 miles. I got $6k less than I paid for it on trade in, so it amounted to an average depreciation of $1500/year. Repair costs were $0, as I sold it right before the B2B warranty expired. When I factored in maintenance, insurance, gas, etc, it was right around the $3500k/year mark, which I considered excellent.
I have no idea what my total cost of ownership for my Golf will be, but I doubt it'll be less after four years than my Mazda's was.
When I traded my Mazda3, it was four years old and had 44,000 miles. I got $6k less than I paid for it on trade in, so it amounted to an average depreciation of $1500/year. Repair costs were $0, as I sold it right before the B2B warranty expired. When I factored in maintenance, insurance, gas, etc, it was right around the $3500k/year mark, which I considered excellent.
I have no idea what my total cost of ownership for my Golf will be, but I doubt it'll be less after four years than my Mazda's was.
Really not quantifiable.
southpawboston
Drag Racing Champion
- Location
- Somerville, MA
Why?
cb1111
Newbie
- Location
- Virginia, USA
Sure it is, but only after the car is sold. In order to figure out costs, you have to determine how long you will keep the car.
The 2018's will have a lower cost of ownership than the 2017's over a 5 year period because of the extended warranty.
Rafiki76
Ready to race!
- Location
- Los Angeles
- Car(s)
- MKVII GTI
You can calculate a very rough estimate but as CB1111 said, until you sell the car you cannot determine the true cost.
You can easily find an average value for gas, insurance, annual maintenance, create an annual budget for modifications, cleaning/detailing the car, and any other figure you believe fits the criteria.
But you also need to take into account the repairs needed (hopefully none), any problems encountered with the vehicle, going over budget or seeing a change in yearly averages for the above costs.
Maybe some owners who have already sold their GTI can weigh in on their experiences, but it is very personal as the cost of a stage 2 gti is different from stage 1 to stock and so on.
You can easily find an average value for gas, insurance, annual maintenance, create an annual budget for modifications, cleaning/detailing the car, and any other figure you believe fits the criteria.
But you also need to take into account the repairs needed (hopefully none), any problems encountered with the vehicle, going over budget or seeing a change in yearly averages for the above costs.
Maybe some owners who have already sold their GTI can weigh in on their experiences, but it is very personal as the cost of a stage 2 gti is different from stage 1 to stock and so on.
southpawboston
Drag Racing Champion
- Location
- Somerville, MA
And that's what I did in my example above.
That's making several big assumptions:
The first being that repair costs WILL be incurred after the 2017 3/36 that WON'T be incurred in the 2018 5/60. Is it possible? Yes. Is it probable? Hard to say
The second being that the incentives taken advantage of on leftover 2017s will not offset the increase in repair costs from not having the superior warranty of the 2018s. Is it likely that the 2017s will incur 3-4k more in repair costs than the 2018s?
southpawboston
Drag Racing Champion
- Location
- Somerville, MA
Sure you do-- IF you know that the price you are paying on the new car is not artificially raised in order to give you more on your trade in to make you think you're getting an incredible trade in offer.
Whenever I've traded a car in, I've negotiated the price of the new car first. I never tell the salesman I'm trading a car. Once I get the quote in hand, I come back the next day or couple of days and negotiate some more. Once I'm ready to deal, I then say I've changed my mind and want to trade in my car. The offer they give me on the trade--without changing the deal on the new car, is the value I assign to my trade in for cost of ownership calculations.
Gibberoni
Ready to race!
- Location
- Simpsonville, SC
$30,771.86
Paid off
I should note I feel like that is missing a few payments, but every drop of gas, upgrade and repair is in that cost. Just subtract selling price for TCO.
Paid off
I should note I feel like that is missing a few payments, but every drop of gas, upgrade and repair is in that cost. Just subtract selling price for TCO.
I understand completely, but as a sales manager once told me, "all buyers are liars". You're watched when you pull up to see what you're driving. They always assume you're trading. They need to make a certain amount when they sell your trade. When I shopped I went to the two dealers in the area. Both sold their R's at MSRP, and both offered me the same in trade, so I really only had one variable since I paid cash.