Used car cost of ownership

Purchase price, taxes and fees

Start with the price you negotiate, then add sales tax, registration and any dealer fees. Tax on private sales differs by province and state, so check the rules where you will register the car.

Maintenance and wear items

Every car needs routine service: oil and filter changes, fluid checks, tires, brakes, wipers and a battery every few years. Major service intervals often arrive around 100,000 km (60,000 miles), when spark plugs, coolant and transmission fluid may be due, along with a timing belt on some engines.

Maintenance costs rise as a car ages and adds distance. Brand matters too: European luxury cars usually cost more to maintain than mainstream Japanese and Korean models, and trucks and large SUVs need bigger tires and brakes.

The other running costs

• Fuel: depends on the car’s fuel economy, how far you drive and local prices.
• Insurance: depends on the model, your driving record and where you live. Get a quote before you buy.
• Registration and inspections: annual fees and any required safety or emissions checks.
• Depreciation: the value the car loses while you own it, which you only feel when you sell.
• Unexpected repairs: keep a reserve, especially for an older or higher-mileage car.

Build a 1, 3 and 5 year budget

Add the purchase price to each year’s expected maintenance, then layer on fuel, insurance and registration. Comparing two cars this way often shows that the cheaper car to buy is not the cheaper car to own.

A Lymyn report estimates the purchase price plus maintenance for 1, 3 and 5 years for the specific make, model, age and mileage.