Honda Cost Of Ownership Considerations
The following factors should help you consider the cost of ownership for a new or used Honda over the lifetime of your vehicle. When buying a Honda, researching the values of the factors below will give you a better understanding of the costs you will incur from buying a new Honda. Much of this information can be retrieved from your Honda dealer and we will be happy to answer any questions you might have. We at Honda Arlington Virginia hope that this information makes your car buying experience more pleasant.
Financing costs is the interest charges that you incur from borrowing money to purchase the new or used Honda. The amount of the interest that you pay varies depending on the interest rate and length of the loan that you acquire. The consumer chooses the length of the loan and the interest rate is determined by the interest rate market and the consumer’s credit rating. Our featured Honda dealership has many competitive financing options available to you. Learn more about our financing department.
Taxes & Fees:
Also known as DMV fees, taxes and fees consist of the base sales taxes, license and registration fees in your state, and a gas guzzler tax if applicable. These fees are regulated by the state and are a fixed cost – meaning these costs cannot be negotiated when buying your Honda
The amount by which the value of a car declines from its original purchase price is it’s depreciation value or rate. Different vehicles and different makes depreciate at different rates. The best way to estimate the rate of depreciation for the Honda vehicle that you are considering to buy, is to review the depreciation values from similar vehicles from the same manufacturer. At our featured Honda dealership, our friendly staff will be happy to provide you with depreciation values for any of the Honda cars or trucks that we sell.
Insurance costs, or premiums are charged by auto insurance companies in your state. You should check with several different insurance companies to find out which one will provide the best coverage for you at the best price. Consumers will generally receive better pricing from auto insurance companies the better their driving record. Consider some tips to save money on auto insurance.
Fuel costs will vary greatly depending on your driving habits. The fuel consumption of the vehicle you choose – meaning the miles per gallon – multiplied by the amount of miles that you typically drive multiplied by the price of gas, will give you an estimate of the costs of fuel for your vehicle. The miles per gallon may vary depending on the condition of your vehicle. Conditions such as low tire air pressure may adversely affect the miles per gallon your Honda car or truck will experience. Only you can determine how many miles you typically drive your car and you should take note of which miles are highway and city. Gas prices change depending on the economy and it can be difficult to predict gas prices in the future. It is best to take the current gas prices and factor in the current inflation rate. Using this formula will give you a good estimate of the cost of fuel during the ownership of your Honda. The Honda dealership staff will be happy to help you determine these figures and give you a better idea of what your true cost of ownership will be.
There will be two types of maintenance expenses that you will need to consider: scheduled and unscheduled. Scheduled maintenance is the performance of factory-recommended items at periodic mileage and/or calendar intervals. The scheduled maintenance costs can be determined by reviewing the Honda owners manual and consulting with their service department to determine the pricing for such maintenance. Unscheduled maintenance includes wheel alignment and the replacement of items such as the battery, brakes, headlamps, hoses, exhaust system parts, taillight/turn signal bulbs, tires and wiper blades/inserts. Unscheduled maintenance is more difficult to determine since these costs arise unexpectedly. Selecting a more reliable vehicle and following Honda recommended scheduled maintenance can reduce unscheduled maintenance.