You may think you’re getting a bargain, but you might be mistaken.  According to Consumer Reports, a car that is inexpensive initially might cost you more in the long run.

People fail to add in additional costs such as, fuel, maintenance, an auto warranty, interest, depreciation, and interest.  After doing the math, you may find that owning the car may cost a lot more than you thought.  For example, a Mitsubishi Lancer at $17,500 is $5,000 less than the Mini Cooper.  However, if you look at owning the vehicle for five years, you will actually be paying $3,000 more for the Mitsubishi.

Consumer Reports says that the average new vehicle will depreciate in value 65 percent over the course of five years.  Just a few of these percentage points are significant for the owner of a car.  In addition, cost in fuel varies widely among vehicles.  Repairs and maintenance will add up to around 4 percent of ownership costs.

Motorists can protect themselves by considering all of the expenses that they will endure owning a vehicle and purchasing an auto warranty.  This will allow drivers to have peace of mind.