The true cost of owning a used car
Two cars with the same price can cost very different amounts to own. Before you choose, add up what each one will cost over a year. None of this is financial advice; it's a simple way to compare cars on the same footing.
At the start
- Sales tax: in Texas, 6.25% of the price (less your trade-in's value, when you trade in at a dealer). On a $15,000 car that's $937.50.
- Title, registration and dealer fees. Ask a dealer for the out-the-door price, which includes them.
- Anything it needs soon: tires, brakes or a battery coming due. An inspection by your own mechanic will tell you.
Every year
- Insurance. Get quotes for the exact cars you're comparing before you decide. The same driver can pay very different amounts for two similar cars.
- Fuel. Miles per year ÷ the car's MPG × the price of gas. For example, 12,000 miles at 25 MPG and $3.00 a gallon is about $1,440 a year; at 18 MPG it's about $2,000. CARZyro shows a car's MPG on its page when it's known.
- Maintenance and repairs: oil changes, tires and brakes, plus a cushion for repairs, which grows as a car gets older and its mileage climbs.
- Registration renewal each year.
If you borrow
A loan adds interest. Each car's page on CARZyro shows an estimated monthly payment, with the terms it assumes (10% down, 60 months, 7% APR) and a place to change them to your own numbers. Compare the total you'd pay over the whole loan, not only the monthly amount: a longer loan lowers the payment but usually costs more in total.
Putting it together
Add the yearly costs to the price and compare that total between the cars on your list. The Compare page puts two cars side by side, and the questions to ask a dealer help you get the out-the-door price for each.
This guide is general information to help you shop, not legal or financial advice. Rules and fees change, so check the official source linked above before you rely on them.