What You Need to Know About the True Cost of Ownership Before Buying a Car, Truck, or SUV

February 12th, 2025 by

Man Holding a Cost of Ownership Sign

We have a wide selection of new and used vehicles for sale in Springfield. There’s something for everyone at our lot, from rugged GMC pickup trucks with premium features and family-friendly SUVs to the world’s most awesome Hummer model. We’ll help you choose among quality pre-owned vehicles from all makes and models.

We’ve already detailed what it takes to budget for a new vehicle and how to shop like a pro when selecting a new car, truck, or SUV. But do you know about the true cost of ownership?

Keep reading to learn more from the Thompson team.

What Is the Cost of Vehicle Ownership?

The cost of ownership of a vehicle refers to all the expenses associated with purchasing, maintaining, and operating a car over time. It goes beyond just the sticker price and includes both fixed and variable costs. Fixed costs are those that stay the same from month to month, like insurance. Variable costs are those that can change, such as refueling and maintenance costs.

We will take a closer look at each type of ownership cost to give you a better idea of what to expect when driving your car, truck, or SUV.

Statistics of Vehicle Ownership Costs

But first, a closer look at some numbers. Americans love to drive, and they love their cars. From the glory days of the open road along Route 66 to digital nomads carving out a living on laptops, driving cars has not slowed down over the past 100 years. Daily drives can be as mundane as going to work every day to the office or as breathtaking as camping in a national park.

Take a look at some numbers behind what it means to be a car owner in the United States:

  • As many as 92% of American households own at least one car.
  • There are more than 283 million registered vehicles in the United States.
  • Missouri has more than 5.3 million registered vehicles.
  • SUVs continue to be the most popular body style in America. 46% of car owners drive crossovers while 10% drive SUVs, adding up to 56%.
  • The average price of a new car as of January 2025 is $49,740.
  • Nearly 16.8 million vehicles were sold in 2024.

How to Calculate the Cost of Vehicle Ownership

Calculate the cost of ownership of a vehicle by adding up all the expenses associated with buying, maintaining, and operating the car over a period of time. You can get as granular as you want.  Add up your various costs over a year and divide by 12 to get the average monthly cost of ownership. Divide by 52 to get a weekly figure.

See the national average of these annual costs of ownership for a vehicle in a hypothetical example. Your actual results will vary:

  • Auto insurance: $1,700
  • Refueling: $2,150 
  • Maintenance: $800
  • Registration, Taxes and Fees: $815
  • Depreciation: 10 to 15% per year ($3,000 for our purposes)
  • Auto Loan Payments: $7,200 
  • Total per year: $15,665
  • Monthly cost of ownership:  $1,305
  • Weekly cost of ownership: $301 

If you don’t plan on selling your car, you can remove the depreciation amount. You could also leave out the auto loan amount since that’s already going to be a fixed amount.

So, leaving out those figures, the annual cost of ownership, not counting the auto loan and the depreciation, comes to $5,465. The monthly cost of ownership comes to $456, while the weekly cost comes to $105.

Vehicle Insurance Costs

Your annual vehicle insurance costs can vary widely. Vehicle insurance starts with the value of the car, truck, or SUV. Then, there is how much risk a driver has on daily jaunts. For example, someone who drives a vehicle 10 miles a day might have better insurance rates than someone who drives 50 miles a day. 

Also, it depends on how much insurance coverage you want. Minimum insurance, as required by law, is generally just liability insurance that covers vehicles and personal injury for the person who causes the accident. However, comprehensive coverage insurance will cost more.

Lenders will likely require comprehensive insurance policies to cover the full value of the vehicle in case it’s totaled. That way, the lender can recoup more of the value of the car.

The average annual cost for comprehensive vehicle insurance comes to $2,638. Meanwhile, the annual cost for minimum vehicle insurance is around $767. Your actual costs for insurance will vary.

You can lower your insurance costs when you renew your policy by avoiding an accident, driving fewer miles, and not getting any tickets (moving violations) like speeding or reckless driving.

Person Refueling a Vehicle

Fuel Costs

Gasoline costs in Springfield are relatively low. In February 2025, gas prices in the United States averaged $3.11 per gallon. In Missouri, prices were $2.87, according to AAA. Greene County gas prices averaged $2.82 per gallon.

There are several ways you can save on gasoline as you drive, aside from purchasing a fuel-efficient new vehicle:

Vehicle Maintenance Costs

You should bring your vehicle in for GMC and Buick maintenance every 7,500 miles or once a year, whichever comes first. When you bring your vehicle to our service center, we will take care of the following tasks:

  • Synthetic oil change
  • Oil filter change
  • Tire rotation
  • Multipoint inspection
  • Brake inspection

Around the 15,000-mile mark, we will change out the air filters.

At 30,000 miles, we’ll look at the spark plugs and possibly replace them.

When you get to the 50,000-mile mark, you’ll need to replace the tires, 12-volt battery, and brake pads.

Over time, these vehicle maintenance costs will add up. The average vehicle maintenance cost for a year is around $800. Some years, you will spend less (two full synthetic oil changes might be around $200), while some years, you might spend more on tires and brakes.

If you want to estimate your maintenance costs, RepairPal is the place to go. However, we will let you know if anything needs attention after every service stop. That way, you can budget for your repairs. Our service coupons can help you save cash on maintenance.

Registration, Fees, and Taxes

You’ll have to register your vehicle when you buy it. You can choose between one-year or two-year tags with registration fees that occur annually or bi-annually. Fees vary based on the size of your vehicle. The larger the vehicle, the higher your registration fees might be.

Annual property taxes are due at the end of the year, and they are based on the assessed value of your vehicle. It’s a percentage of the actual value versus the actual value. Make sure to pay your property taxes on time to avoid penalties. 

Take into account sales tax for your purchase. In Missouri, the state’s portion of the sales tax is 4.225%. In Springfield, that local portion of the sales tax is 3.875%. So, on a $50,000 vehicle, sales tax would be $4,050 when you buy a model from Thompson Sales. The Missouri Department of Revenue has a sales tax calculator you can use to determine what the sales tax could be.

Depreciation

Depreciation can also be considered a cost of ownership. Your car will lose value over the years if you want to sell it at some point. The average car depreciates around 45% of its value in the first five years after someone drives it off the lot. It loses 20%, on average, in the first year.

Part of the reason is that the fees associated with the dealership are no longer a part of any future sales price. Another is that the condition of the vehicle will no longer be a constant. The engine starts to gradually wear, as do the brakes and tires. 

So, you can take into consideration the loss of value of your vehicle over time as a cost of ownership. Plus, the value of your car suddenly is less than that of the loan once you drive it off the lot. 

Gap insurance can help you with this issue if the car becomes undrivable at some point. Gap insurance can pay the difference between the value of the vehicle and the value of the loan. For example, your ordinary insurance policy 

Man Signing Auto Loan Papers

Auto Loan

As many as 80% of new cars are purchased using an auto loan. 38% of used vehicles are also purchased with some kind of auto financing. Your auto loan is a fixed cost of vehicle ownership. 

The auto loan comprises two main parts: the principal and interest. Interest is the fee you pay to the lender for the loan. The interest rate determines how much interest you’ll pay. If you have a better credit profile, your auto lender could provide a lower interest rate.

How to Save Money on the Cost of Vehicle Ownership 

Remember, your actual costs of vehicle ownership will change from month to month based on gas prices and how much you drive. See some ways you can save money on the cost of vehicle ownership:

Find the Cheapest Gas Prices

There are many gas finder apps available that can help you find the lowest gas prices wherever you travel. Consider signing up for benefits with fuel-saver cards that could lower your refueling costs.

Invest in a Fuel-Efficient Vehicle

Many gasoline-only vehicles can get 30 miles per gallon or more on highways. Hybrid powertrains can get 40 or more mpg in the city. Purchasing a hybrid, plug-in hybrid (PHEV), or electric vehicle (EV) can improve your refueling costs even more.

Maintenance Coupons

We have a rotating selection of maintenance coupons that can help you save on regular maintenance tasks. Check back once a month to see if you could save on:

Any savings can help you lower the cost of vehicle ownership. We’re happy to help in any way we can when it comes to providing you with a better driving experience.

Investing in an Extended Warranty

When you purchase a car, truck, or SUV, you have the opportunity to add an extended warranty. An extended warranty not only gives you peace of mind but also lowers your potential repair costs if something breaks. Your actual results will vary.

Get a Lower Interest Rate

You can lower your interest rate when you apply for financing. Put a larger down payment toward your auto loan, which will lower your auto loan amount. Try to improve your credit score before you get an auto loan because you could get a lower interest rate. 

So, look over your credit history report and see if there are any debts you can pay down or correct any errors. Once you make the payments or fix the items, call the credit bureaus to let them know these items were taken care of. 

Test-Drive a New or Used Vehicle in Springfield, MO

Ready to get behind the wheel of your next vehicle? Contact us, call (417) 763-6811, or schedule a test drive with our team. We’re happy to help in any way we can!

Posted in New Vehicles