Total cost of owning a pickup truck for 10 years - with loan
If you get a 6 year loan on a $35,000 truck at 5% with zero down, over ten years the total cost is ~$63,000. It would be worth about $7,000 in the end (at 15% per year depreciation) with $120k miles on it.
Includes depreciation, insurance, gas, routine maintenance, major maintenance (tires, brakes, etc).
* you don't pay ahead on the loan, and end up paying $5,584 in interest
* 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.
Routine Maintenance 100
Major service 1000
Truck Loan 35000