True Cost of Ownership
Project the real cost of any vehicle — depreciation, fuel, insurance, maintenance, financing, and registration.
Vehicle & usage
Where the money goes
Depreciation leads
- 35-50% of 5-year TCO
- ~20% lost in year 1
- Buy used to skip the cliff
Fuel varies widely
- 15-25% of TCO for commuters
- Lower for EVs (electricity)
- Depends on annual miles
Insurance & financing
- ~10-15% each over 5 years
- Credit union APRs beat dealers
- Full coverage by ZIP varies ±50%
Frequently asked questions
What is True Cost of Ownership?
The total amount you spend on a vehicle over time — depreciation, fuel, insurance, maintenance, repairs, financing interest, and registration. Sticker price is usually only 40-60% of TCO.
Which cost is typically largest?
Depreciation — 35-50% of 5-year TCO on new cars. New cars lose roughly 20% in year 1, 15% in year 2, 12% in year 3. Used cars absorb less because someone else already took the hit.
How accurate are insurance estimates?
The defaults are US averages for full coverage by vehicle type. Actual premiums vary ±30-50% based on ZIP, driving record, credit, and coverage. Use the override field with your actual quote for accuracy.
Are EVs cheaper to own?
Usually yes over 5 years at normal mileage. Lower "fuel" cost (electricity vs gasoline), ~35% lower maintenance (no oil changes, regen braking), but steeper year-1 depreciation partially offsets.
TCO averages assume a clean vehicle
A vehicle with accidents, salvage title, or odometer rollback blows through average numbers fast. Check the history first.
Get Full Carfax Report — $4.50