EP025 True Cost of Car Ownership

Learning to drive and becoming a licensed driver is a fundamental life skill. Many teens and young adults anticipate with excitement owning their own car, sitting behind the wheel and driving with their friends to work, school, or activities. As young millionaires-in-the-making think about driving and car ownership, it’s important to develop a financial plan that works and takes into consideration the additional expenses that are associated with car ownership.

 

On today’s episode, I’m discussing the true cost of owning a car. I’ll highlight some of the key areas that many people often overlook when planning and budgeting to purchase their first car, some important statistics you need to know, as well as the benefits of paying off your car. I’ll also share some alternative transportation ideas you can use while you save for your first car or other important things you want to purchase in the future.

 

“When you’re considering purchasing a car, be sure to factor in these seven car ownership costs.” – Tracey Bissett

 

This Week on Young Money:

 

• Automotive and car ownership statistics you need to know.
• The 7 key cost categories associated with car ownership.
• How much a new car depreciates when it leaves the dealership.
• Why a 20-year-old single man pays on average 23% more than a 20-year-old single female for car insurance.
• The average first-year total cost of owning a car.
• How car ownership costs may be reduced the longer you own the car.
• Alternative transportation strategies you can use while saving your money.

 

Alternative Transportation Options for Young Millionaires-in-the-Making:

 

1. Bus, subway, light rail transit, or street car
2. Car sharing plans such as AutoShare or ZipCar
3. Taxi, Uber, or Lyft services
4. Carpool with friends
5. Carpool with family
6. Ride your bike
7. Walk

 

Resources Mentioned:

 

• YM002 Out of the Mouths of Young Money Masters
• YM006 What are Your Intentions…Financially Speaking with Jackie Porter
• YM020 Business Financing Tips with Sharon Connolly, VP at BDC
• YM021 Banking in the Digital Economy with Neil Durmenter, President and CEO of the Canadian Bankers Association
• YM024 Young, Fun and Financially Free with Leanna Haakons of Black Hawk Financial

 

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