You've Bought Your Car - How Much Will it Cost to Keep It?

You've done your research and compared all similar makes/models and found the most economical choice when it comes to sticker price. Perhaps you're starting to to shop dealers to find the best car and price based on your research.

STOP

Before you purchase, have you considered the life-time cost of your vehicle?

A less expensive make may cost you more in the long run when you account for maintenance and resale value, similarly that great deal on the luxury car may be insignificant after you factor in maintenance.

I'm not suggesting you shouldn't buy a Volvo or Lexus because they cost more to maintain or that you should turn away from a Ford Focus because the resale value is low, but you should know what you're getting into before you sign on the dotted line.

If you have a trusted mechanic she might be a great resource for getting started - just keep in mind we all have our biases and preferences.

Consumer Reports has put together a ranking of full-life costs for most vehicles that includes interest rates (if you're paying them), resale value, maintenance and insurance. Unfortunately, you can only access this report if you have a subscription. I would still encourage you to read the public part of the article as it will give you a solid idea of questions to ask or things to look for. Consumer Reports: What A Car Will Cost.

If you live in the United States (or have access to a Zip code) then you can make use of RepairPal a website that will allow you to enter the details of your vehicle and ask for an estimated cost for specific repairs.

Before you purchase ask yourself some of the following questions:

How long do I intend to own this vehicle? If you answer a couple of years then resale value is probably important.

What will make me happier in the long run? Feeling fabulous in my luxury car or saving on repair costs? It doesn't make sense to feel good one day a year when you get your repair bill but feel uncomfortable and or less than thrilled 364 days of the year because you passed on your dream car - or visa versa.

How much driving do I do? Is fuel efficiency a really high priority?

And remember as when shopping for your car, compare apples and apples. For example, regular maintenance checks may be slightly higher with a newer Volkswagen but you only need to get them every 15,000 kms.

As a final note, a general rule to guide you (but not hold fast to): Luxury cars have luxury repairs; domestic cars will save you now - but not necessarily later; those three names we hear so often Toyota, Volkswagen and Honda are repeated for a reason - they consistently come out on top for lower life-time cost and reliability.

Now for my bias - I LOVE Volkswagen. If you want power, style, fuel efficiency, resale value, creature comforts and economy all rolled into one - then you want to check out a Volkswagen.

And remember - the internet is a powerful tool. When you've settled on what kind of car you want (or at least narrowed it down to a couple) google the make and model.

Happy Driving!