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Follow on Google News | How do you calculate the true cost of ownership when it comes to your next vehicle?This article will explain some of the major factors that will influence the cost of ownership when it comes to automobiles.
By: SOS Car Loans The Honda Civic may has been the most expensive vehicle to purchase now, but four years down the road it will sell for as high as $16000 on the market place. If you take 24000 subtract 16000 and divided by 4, you will get the annual ownership cost of $2000 per year. The Toyota Corolla on the other hand may cost a little less in the beginning, but the used car market will have slightly less demand for that vehicle when it is used. That car may sell for as high as $14000, and if we repeat the math again, you will get the annual ownership cost of $2250. The last competitor the GM Cobalt maybe the cheapest vehicle to buy, but it is also the cheapest to sell due to GM's ever mounting problems, and factory incentives. The vehicle's resale value is usually in the toilet, a four year old Cobalt maybe only worth $9000 to some one, making the cost of ownership per year to be a much higher amount of $3000. The point I am trying to make here is not to be over concerned with the vehicle's fuel economy, insurance savings, or the repair bills. The single biggest factor in the equation is how much do you have to pay for the vehicle when it is new versus how much is the vehicle worth used. The idea behind this exercise is to consider the popularity of the vehicle, buy something that everyone else would want. Buy a car that is hot, popular, and desirable to some body. The little savings you get upfront on purchase maybe a bad investment if you are going to lose your shirt selling it later on. So the next time you are ready to walk into a dealership to purchase a new car, read their reviews, research the selling price on a used one. And above all make an intelligent choice, but don't be fooled by the factory incentives, or deal of the century events. Thank you for reading this article it is brought to you by SOS Car Loans, your bad credit loan expert in the Toronto area. To visit us online please go to http://www.soscarloans.com # # # SOS Car Loans is Toronto's leading no credit check car loan provider; we can approve everyone, even without a credit check. If you are tired of been turned down all the time, visit us online at http://www.soscarloans.com End
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