AFSCME 3357-HOF'S BLOG

True or False: It costs more to own a Honda Civic than it does a Dodge Ram 2500.

Answer: False, but it's closer than one might think -- at least for the first year. Even though the fuel cost for 15,000 miles for the Honda is only $653, the depreciation on the Civic is $5,252 for the first year, compared to $2,891 on the Dodge Ram. Thanks to higher financing, taxes, insurance, taxes and maintenance, the Dodge truck costs $10,339 for the first year compared to $9,403 for the Civic. Over the long term, the Civic is much cheaper. The 5 year cost on the Civic is $28,116 versus $43,707 for the Dodge. The difference: $15,591. It could be worse though, remember from my previous post, over 5 years, GMC pick-up cost about $10,000 more than the Dodge.

What about SUVs? A Nissan Armada is rated at $53,195 over 5 years, with a whopping $17,661 coming out of your pocket in the first year.

It's clear then that your choice in vehicle can easily make a $5,000 a year difference in your net worth over time. That difference can either be ameliorated or exaggerated based upon your choice of new versus used and based on how long you choose to keep your vehicles. If you are finding it impossible to save money, I recommend that you run the numbers an plan your car purchases far in advance. Also, these figures assume a 15,000 miles driven per year. You should budget the per mile costs of your actual vehicles when you are determining where to live. You may find that it is more economical to buy a more expensive house that is closer to work.



2005 Honda Civic True Cost to Own ratings at Edmunds