Ownership costs are increasing
AAA calculates the average cost of owning a new vehicle at $773.50 per month, or $9,282 annually. According to the Environmental Protection Agency (EPA), the cost of ownership typically includes one or more of the following expenses:
- Lease or loan payment
- Fuel
- Parking
- Registration
- Car insurance
- Routine maintenance
Bankrate reports that drivers should budget an additional $557 monthly in ownership costs in addition to their lease or loan payments. Though RepairPal estimates that on average, most vehicles visit the repair shop for major unscheduled repairs once every two years, modern technological advancements have driven up the cost of even minor repairs.
It’s easy to see that a triple-whammy of monthly lease or loan payments, regular maintenance costs, and an unexpected repair bill can blow any watertight budget to smithereens. And forced to choose between the potential of defaulting on a car loan or eking out a few more miles from a limping vehicle, customers often choose the latter. Contending with car troubles typically trumps not having a vehicle and the financial ramifications that come with missing work, or even worse, repossession.
Want to lessen that financial sting and build stronger customer loyalty? Try these recommendations.