How much does a car really cost you?

I have always been telling my friends that a car costs as much as a house. They always thought it was a joke but it's not.

I came across a study published on imoney.ph. The study shows that an average sedan costs 198,000 pesos a year!

The 3 first expenses are:

1. Depreciation: 84,000 a year.
2. Finances charge: 42,000 a year.
3. Fuel: 39,000 a year.

This doesn't even includes the purchase price of the car. Only the depreciation and the finance charges (cost of taking a loan).

You might find that the depreciation is a bit over estimated but I don't think so. A common rule of thumb says that a car loses 12% of its value every year. If your sedan costs 800,000 brand new, after one year, it will lose 86,000 pesos.

The study shows that maintenance cost is only 5,000. I don't agree with it and I would estimate it between 10,000 to 15,000 a year since the car is CASA maintained.

This is a very important study so people will realize how big is the cost of owning a car.

On my next post, I'd like to compare it with owning a house.

Here's the link to the full article:

http://www.imoney.ph/articles/annual-cost-owning-car-philippines-infographic/?utm_source=facebook&utm_medium=paid-content&utm_campaign=annual-cost-owning-car-philippines-infographic