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10 Steps to Finding the Right New Car
Step 5: Remember the Cost-of-Ownership

AcuraAudiBMWBuickCadillacChevroletChryslerDodgeFerrariFordGMCHondaHUMMERHyundaiInfinitiJaguarJeepKiaLand RoverLexusLincolnLotusMaseratiMazdaMercedes-BenzMercuryMINIMitsubishiNissanPontiacPorscheSaabSaturnScionSmartSubaruSuzukiToyotaVolkswagenVolvo 10 Steps to Finding the Right New Car Step 1: What Kind of New Car Do You Want? Step 2: How Much Can You Spend on a New Car? Step 3: Lease or Buy Your Next New Car? Step 4: Compare Many New Cars Step 5: Remember the Cost-of-Ownership Step 6: Researching New Cars Step 7: Talking With the Internet Sales Department Step 8: New Car Test Drive Step 9: Make the Final Decision Step 10: Time to Buy Your New Car

We have talked about this briefly in our previous steps, but it is worth repeating. The cost to own a car continues to climb and on top of that, different cars have different rates of depreciation. While depreciation can be difficult to calculate -- nobody knows what the used car market will look like in five years -- you can easily calculate the other costs associated with buying a new car. Here are the five most common cost-of-ownership topics you will want to explore:

• Insurance Costs - Call your insurance company with the make and model of the you are thinking about buying and get an insurance quote. You might be surprised to learn that the new car might be less expensive than your old car to insure. Alternatively, you may find the car of your dreams costs more to insure than you are willing to pay.
• Maintenance Costs (oil changes and routine service) - Some cars have special maintenance needs and luxury cars typically cost more to maintain than less expensive models. While you are at the dealership, ask them how much it costs to have basic services performed, such as oil changes, tire rotation, transmission fluid changes, radiator flushes, etc.
  
• Tires - These days, even some inexpensive cars can come with some very expensive tires. It's not all that unusual to find a $20,000 car with 18-inch wheels with low-profile high-performance tires. If the tires are going to cost $250 each, you will want to know this before you buy the car and not three years later while standing at the counter of your local tire shop.
  
• Fuel Economy - All new cars display a sticker with fuel economy information clearly stated. You may also want to do a little additional research and see what owners are getting in the real world. Some cars will easily obtain the higher number listed on the information sticker, but others will struggle to get even the lower, city number.
  
• Depreciation - Depreciation is difficult to determine and varies greatly by make, model, and trim. Five years ago, do you think any of the car buying sites that figure depreciation numbers thought the market would drop out from under trucks and sport utility vehicles? Well, it happened. Now there are dealerships who will not even take a pickup truck or SUV in on trade, and if they do, they are offering bottom dollar. Depreciation can range from 30% to 60% of the car's value.