What's Covered
AAA’s analysis covers vehicles equipped with
standard features and optional equipment including
automatic transmission, air conditioning, power steering,
antilock brakes and cruise control.
Fuel
Fuel costs were based on $2.603 per gallon,
the late-2009 U.S. price from AAA’s Fuel Gauge Report,
www.FuelGaugeReport.com. Fuel mileage is based on
Environmental Protection Agency fuel-economy ratings
weighted 60 percent city and 40 percent highway driving.
Maintenance
Costs include retail parts and
labor for normal, routine maintenance as specified by
the vehicle manufacturer. They also include the price of
a comprehensive extended warranty with one warranty
claim deductible of $100 and other wear-and-tear items
that can be expected to require service during five
years of operating the vehicle. Sales tax is included on
a national average basis.
Tires
Costs are based on the price of one set of
replacement tires of the same quality, size and rating as
those that came with the vehicle. Mounting, balancing
and sales tax also are included.
Insurance
AAA based its insurance costs on
a full-coverage policy for a married 47-year-old male
with a good driving record, living in a small city and
commuting three to 10 miles daily to work. The policy
includes $100,000/$300,000 coverage with a $500
deductible for collision and a $100 deductible for
comprehensive coverage.
License, Registration and Taxes
Costs include all governmental taxes and fees payable
at time of purchase, as well as fees due each year
to keep the vehicle licensed and registered. Costs
are computed on a national average basis.
Depreciation
Depreciation is based on the
difference between new-vehicle purchase price and
estimated trade-in value at the end of five years.
Finance
Costs are based on a five-year loan at
6 percent interest with a 10 percent down payment. The
loan amount includes taxes and the first year’s license
fees, both computed on a national average basis.
Next: Figuring Your Costs »
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