Total Cost of Ownership Revisited - What have you missed?

While the most obvious expense component in purchasing a car is the price of the car. It may not be the most important. That's why the dominant message in most car ads is "PRICE". Of course there are other costs that one should consider prior to purchasing a car. Not so intuitively obvious. These costs are often found in the small print. You'll find Taxes, Registration costs, and miscellaneous fees, dealer installed equipment, items that also contribute to that bottom line purchase cost.

Many Items to manage

In the long term there's that concept of total cost of ownership. Cost items like maintenance, insurance, depreciation, fuel cost, also contribute to that figure, not just the price of the car. Indeed even if you pay your car off early you will continue to be paying depreciation, maintenance, etc.

Here is a list of Cost of Ownership elements:

MSRP
5-year Retained Value
5-year Depreciation
5-year Maintenance
5-year Repair Cost
5-year Fuel Cost
State Fees
5-year Insurance

The most elusive element of any car deal and the likely the most overlooked element is the cost of money.