How To Calculate The Cost Of Owning A Car

Are you ready to buy your first car? Are you looking to upgrade to a newer model? Either way, it never hurts to know how much it’ll cost to own a vehicle. Remember, even if you’ve driven for years, prices change depending on the model and insurance. The first step is to find an automobile you like. That’s where Barbour-Hendrick Honda in Greenville, North Carolina, can help.

2022 Average Car Payment

For a 2022 vehicle, people paid, on average, $667 per month. Compared to 2021, that’s an increase of $85. As for leasing, they only paid $546 a month, whereas, on a used automobile, the price decreased to an average of $515 monthly. So, whether you plan to purchase a new or used vehicle or you prefer to lease, you can start by using these average monthly payments.

Auto Insurance

By law, most states require drivers to carry auto insurance. However, the type of coverage and the cost will depend on several factors. Those include the type of vehicle, your state, your driving history, and, sometimes, your credit. On average, drivers in the United States paid $1,588 for one year of full coverage.

When you contact an insurance provider, be sure to ask about possible discounts. Often, companies give policyholders a break for a good driving history, few or no traffic citations, and, as far as young drivers, good grades.

Registration, Taxes, and Fees

You’ll still pay for these three things even if you buy a previously owned vehicle. However, to give you an idea of what to expect, the average for registration, taxes, and fees in 2022 was $675. However, the overall cost varies from one state to another. You can’t legally drive your car until they’re paid.


This year, the price of gas has hurt a lot of drivers. However, they should go down at some point. Regardless, most drivers paid roughly $0.18 per mile using unleaded gas. Stretching that out over 12 months equals an annual gas price of $2,700. Along with the price of gas decreasing, you can spend even less by choosing a fuel-efficient vehicle.

The most efficient option is a hybrid, while a large, fully gas-powered SUV or truck is the least efficient. So, if you need to stick to a budget, keep that in mind when shopping for a vehicle.

Maintenance and Repairs

With a new vehicle, you don’t need to worry about repairs for a while. That’s because the vehicle’s protected under the manufacturer’s warranty. Even after that expires, you can opt to purchase an extended warranty. That same applies if you drive an older car. To determine if buying this makes sense, you’ll need to weigh the benefits against the value of the vehicle.

As for maintenance, all cars require regular servicing. That includes oil changes, tire rotations, filter changes, hose inspections, new battery installations, etc. With all the basics combined, it’ll cost you about $1,500 to keep your car in safe working order.

You might also like: 6 Car Seat Safety Tips

Choose the Right Vehicle

To lower the average cost of owning a car, start by working with the right source. Barbour-Hendrick Honda in Greenville, North Carolina, not only sells quality vehicles but also has a highly respected service center.

Disclaimer: The stock image is being used for illustrative purposes only, and it is not a direct representation of the business, recipe, or activity listed. Any person depicted in the stock image is a model.