How to calculate vehicle cost of ownership

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The world is expensive. It's something your parents might have told you growing up, but as a child, it means little. Once you become an adult with real bills, you suddenly realize your parents weren't kidding. One of the most expensive purchases you'll likely face? A vehicle.

That brings us to today's lesson from our friend Jason Fenske at Engineering Explained as he breaks down how much it costs to own a vehicle using his Subaru WRX STI for 27 months as an example.

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Things one takes into consideration when evaluating how much a vehicle will cost to own? Depreciation, fuel, insurance, maintenance, interest (if you're taking out a loan), and in the case of a performance vehicle, you might be adding some aftermarket parts.

Jason's numbers are slightly skewed—as he admits—because of his WRX STI's low mileage, but all things considered, this is a detailed way of looking at your cost of ownership.

In reality, these are all things you might want to consider when purchasing a vehicle  because they are real life costs that will impact your budget.

Take a moment and listen as Jason breaks it down, then call your parents and tell them they were right. You might even want to thank them for providing the heads up you likely ignored when you were younger.

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