Gather price, financing and running-cost evidence
- Itemized out-the-door price
- Written loan terms and down payment
- Insurance quote and realistic annual usage costs
- More than one defensible resale-value scenario
Compare two cars with different operating costs
Two cars have similar payments but different ownership costs
Use the same ownership horizon for both vehicles. Enter each out-the-door price, financing terms, insurance and operating costs, then test a lower resale value. Compare net cost rather than payment alone and keep uncertain repairs or incentives outside the result unless they are explicitly entered.
Build one complete ownership horizon
Use out-the-door price.
Enter matched insurance and usage costs.
Test more than one resale estimate.
Read net cost after an uncertain end value
Net cost subtracts entered end value from cash paid over the loan-term horizon.
Lease vs. Buy a Car: Compare the Same Time Horizon covers the controlling document terms and questions outside this result.
The ownership cost hidden behind the payment
Put financing and recurring ownership costs on one time horizon.
Ownership costs that remain outside the estimate
- Opportunity cost
- Unexpected repairs
- Taxes or incentives not entered