Total cost of owning a pickup truck for 10 years - pay in cash
If you pay cash for a $35,000 truck, over ten years the total cost is ~$57,000 and it would be worth about $7,000 (at 15% per year depreciation).
Includes depreciation, insurance, gas, routine maintenance, major maintenance (tires, brakes, etc).
* truck is driven 10k miles/year
* gets 18 mpg
* gas is $3/gallon
* annual registration is $50 / year (that may be way too low for some states)
* insurance is $75/month (you're a good driver without any speeding tickets right?)
* oil changes / routine maintenance are on average $100 per year over the 10 years
* big ticket maintenance items like tires, brakes, engine service, come to $2,000 over the 10 year period. A new truck would be under warranty at first. Compared to depreciation this is a small part of the picture.
Gas represents 25% ($16k of the total $64k out of pocket). In this simulation the price of gas is fixed, so there is a hidden risk if gas prices go up.
Insurance is 14%
Purchase Truck 35000
Routine Maintenance 100
Major service 1000