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WHAT DOES IT COST TO OWN AND OPERATE A VEHICLE? Many of us prefer driving ourselves in our own vehicles. However, we often underestimate the cost of vehicle ownership. Beyond the monthly payments, regular operating expenses, and maintenance, you need to factor in other major costs like insurance and depreciation. The average annual cost of a vehicle driven 15,000 miles in a year is approximately $9,300. That is $25 per day or $175 per week! Think about how many trips you make in a typical day or week and about the travel options available in your community. Could you save money by using a bus, taxi, or rideshare service? HOMEWORK: Use the Cost Worksheet for Owning and Operating a Vehicle in Resources to calculate what your own vehicle costs you. Benefits of Alternative Transportation Options By leaving the driving to someone else, you can: X Keep appointments and attend events at times when you prefer not to drive, like at night. X Get around even when you are not able to drive because of an injury or your vehicle is not operational. X Avoid driving in heavy traffic, during inclement weather, at nighttime, or in unfamiliar areas. X Avoid the stress of finding a parking space. X Celebrate special occasions responsibly and get home safely. What Are Your Choices for Local Travel? It is easier than ever to find a driving alternative. By familiarizing yourself with your options now, you can: X Understand how they work and what they may cost. X Have a backup plan in place when your vehicle is unavailable or you cannot drive, perhaps due to a medical procedure. One single method of transportation may not meet all your needs, so explore all the options in your community and their different benefits. On the next pages are some details about your options, including payment information. COST WORKSHEET FOR OWNING AND OPERATING A VEHICLE (UNIT 5) To find out how much it costs to own and operate your vehicle every year, list all the related expenses in the table and then add them up. See the table below for how to calculate expense amounts. For less-frequent expenses, such as tires, estimate the cost and divide by the number of years between expenses. IF YOUR EXPENSES ARE . . . THEN MULTIPLY BY . . . Monthly 12 to get the annual expense amount Weekly 52 to get the annual expense amount TYPE OF EXPENSE ANNUAL COST Vehicle monthly purchase payment/lease payment $ Regular operating expenses (gasoline) $ Regular operating expenses (parking) $ Regular operating expenses (tolls) $ Insurance $ Regular and long-term maintenance (oil changes, tune-ups, repairs, and parts) $ Repairs (tires, brakes) $ Registration/license fees $ Inspections or emissions fees $ Taxes $ Depreciation $ TOTAL ANNUAL COST TO OPERATE YOUR VEHICLE $ www.aarp.org/drive Smart Driver Participant Guidebook Resources 115 RESOURCES www.aarp.org/drive Smart Driver Participant Guidebook 93 WHAT DOES THE ROAD AHEAD LOOK LIKE? 5 1 2 3 4 5 6