COST OF OWNERSHIP
The most accurate measure of the financial impact of a vehicle on yourpocketbook is Cost Per Mile (CPM). It can be broken down into just its
depreciation component, or it can include maintenance, fuel and otherexpenses as well. For 2009, the average cost per mile was 56.6 cents, (^)
according to the Bureau of Transportation Statistics. Many independentsources like AAA show higher numbers, and go into more depth. While
there are varying numbers used—and even if all the data aren’t 100percent accurate—they do show certain trends. Amongst these are that (^)
used cars almost always beat out new ones when it comes to CPM.
Another interesting finding is that CPM goes down (on average) the longeryou keep your vehicle, or the farther you drive it. Now, if Joe the mechanic
just told you that your 96,000-mile-old car needs a $1,400 service, what I’msaying may strike you as absurd, but—assuming we’re talking normal
upkeep, the occasional broken part, and that your vehicle is owned freeand clear—it almost makes more sense to spend the money and drive it (^)
another year or two than buy new. The math is simple: If you can getanother year out of the old beater, the amortized cost of that repair will (^)
have been $117 per month. What kind of new car do you think you can getfor that?