How to play
Car Ownership True Cost
Buying a car is only part of the cost. This game shows the real monthly impact once you add loan interest, insurance, fuel, maintenance, and depreciation.
1. Enter the car price, down payment, and loan details.
2. Add monthly running costs like insurance and fuel.
3. Set a monthly budget target.
4. Calculate the true monthly cost and see your score.
How to calculate the “true cost” of a car
Many people compare cars using only the monthly payment. That is risky because the payment is just one part of the story. The true cost includes the loan, running costs, and the value you lose as the car depreciates.
Payment + running costs
Monthly payment covers the loan. Running costs include insurance, fuel, maintenance, parking, and other recurring costs. These often increase over time, especially fuel and maintenance.
Depreciation and resale value
Depreciation is the loss in value over time. If you buy a car for 12L and sell it later for 7L, that 5L difference is a real cost you paid through ownership.
Why term length matters
Longer terms reduce the monthly payment, but they usually increase total interest. A shorter term often improves your long-term cost even if the payment looks higher.
Use a budget target
A car should fit inside your full budget, not replace it. If the true monthly cost crowds out savings or pushes you into debt, the purchase is risky.
Costs people often forget
- Higher insurance for newer cars and higher coverage.
- Maintenance spikes after warranty periods end.
- Parking, tolls, and small monthly fees add up.
- Opportunity cost: money tied up in a large down payment.
FAQ
What depreciation rate should I use?
Use a conservative estimate and adjust as you learn more about the model. The point is not a perfect prediction. The point is to include depreciation so you do not ignore the biggest hidden cost.
If I keep the car for a long time, does depreciation matter?
It matters most in the early years. Keeping a car longer can reduce “cost per year,” but you still pay for value loss plus higher maintenance later.
Related guides
Learn the finance concepts behind ownership costs and loans.
This tool uses simplified assumptions and does not include every possible cost (taxes, fines, accidents, major repairs). Use it as a learning starting point, not as professional advice.