There’s a difference between the price and the cost of a car even when financing with poor credit car loans. We know this because for the last few years at Federal Auto Loan, we’ve been helping applicants find quality lender or dealer partners that support bad credit car loan programs. Our website also provides information on good and bad credit auto loans, repossession, bankruptcy, and today’s topics and tips on choosing the right car.
More than just the price.
If you are only considering the price in what a vehicle is going to cost you, you are making a mistake. There is far more to a vehicle’s cost than just the price on the sticker in the window. A better thing to consider is the idea of “Total Cost of Ownership”… which takes into account a number of other things that “cost you” including: fuel efficiency, reliability, maintenance costs and, especially, depreciation.
Depreciation is the declining value of a vehicle over time. According to those in the know at Kelley Blue Book (www.kbb.com), during the typical five-year ownership period of a car, its loss in value (called depreciation) is usually the biggest expense of all. Depreciation is also one area where car buyers can save money simply by choosing a model that loses less of its value than other vehicles in the same category.