Buying a new vehicle is an exciting decision, but also a big financial one. While many car shoppers—especially first-time buyers—focus on the sticker price or monthly payments to calculate what they can afford or how the purchase will impact their budget, there is much more they should consider to understand what car ownership truly costs.
At Mike White Ford in Coeur d'Alene and Sandpoint, our customers are always excited to get a new car and drive it off the lot. However, we know that they will not be happy with their purchase if it overburdens their bank accounts in the months ahead. Accordingly, we urge customers to look beyond the sticker price to understand the total cost of ownership (TCO) when choosing a new Ford.
Here are the factors you should evaluate in TCO, and how to make an informed decision that fits your lifestyle and budget.
What is the Total Cost of Ownership?
The total cost of ownership refers to all the costs associated with owning a vehicle over time, not just the purchase price. These expenses include:
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Purchase price (or lease costs)
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Interest costs, if the vehicle is financed
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Fuel
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Insurance
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Regular Maintenance and repairs
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Depreciation
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Taxes and registration fees
The costs associated with each of these items will vary depending on the vehicle you choose, your driving habits, and even where you live. Let's look at them one by one.
1. Purchase Price and Financing
Most shoppers start with the purchase price. The base price of a new Ford varies depending on the model, trim, and any available options or packages. Financing also plays a role: your loan terms (length) and interest rate will affect your monthly payment and the total amount you pay over time.
Many of these financing factors can be manipulated to provide a more comfortable monthly payment. Mike White Ford works with multiple lenders, including Ford Motor Credit. Different lenders often offer different interest rates and loan terms. We can help you calculate which offers give you the best option to match your priorities (e.g., lower payments, faster payoff, or lowest overall cost). Ford may also have special offers, such as financing rates for particular vehicles or rebates.
2. Fuel
Gas mileage is one of the most significant ongoing costs for most drivers. If you commute daily around North Idaho or take frequent weekend trips, a fuel-efficient vehicle like the Ford Escape Hybrid or Ford Maverick Hybrid can save you hundreds (or even thousands) of dollars over time in fuel costs.
However, if you need a more powerful vehicle for frequent towing or off-road performance, a Ford F-150 or Bronco may be a much better fit, even if the fuel cost is slightly higher. It's all about matching your vehicle to your lifestyle.
In other words, while keeping fuel costs low is important, it should not override other considerations when selecting a vehicle. Getting the right vehicle for how you want to live should take priority. Just ensure you add a realistic fuel cost into your TCO calculation.
3. Insurance
Insurance premiums vary based on your vehicle's model, year, and type; your driving record; and your desired coverage level. Cars with more safety features (like the Ford Co-Pilot360™ system) often qualify for special rates. However, newer vehicles that cost more to replace may nudge the premiums upward. Our team is happy to help you estimate expected insurance costs for different Ford models during the shopping process. You may also want to ask your insurer to provide a quote before you purchase.
In addition, do not hesitate to shop for the best insurance rates. Many insurers also offer discounts for bundling your vehicle insurance with other insurance products, such as homeowners' or renters' insurance. If you finance your vehicle, your lender will require a minimum level of coverage higher than the legally required minimum in Idaho, which will cost more.
4. Maintenance and Repairs
New Ford vehicles are built to last, and most come with excellent warranty coverage, including:
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3-year/36,000-mile bumper-to-bumper warranty
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5-year/60,000-mile powertrain warranty
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Roadside assistance coverage
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For new EV vehicles: 8 year/100k warranty on electric vehicle components
These warranties, and optional extended warranties, can significantly reduce out-of-pocket costs early in ownership for parts or systems needing attention. In addition, Mike White Ford offers maintenance packages that can keep costs for things like oil changes, filter replacements, and tire rotations under control.
Choosing a model with lower long-term maintenance needs—like a hybrid with fewer moving parts—can also help reduce ownership costs. However, you can expect to incur increasing maintenance and repair costs as your car ages. Parts that wear out, such as tires and brake pads, will have to be considered in TCO as they reach their expected lifespan.
5. Depreciation
Depreciation is simply a fancy financial word meaning that the value of your vehicle decreases the older it gets. While depreciation is inevitable, some Ford models hold their value better than others due to strong resale demand and proven reliability. For example, trucks and SUVs like the Ford F-150 and Explorer tend to retain more of their value than many other vehicles on the market. In addition, the better you take care of your car and the fewer miles you pile on, the less your vehicle depreciates. Buying a new Ford with a strong resale reputation and taking good care of it can help you get more back when it's time to trade in or sell.
6. Taxes, Fees, and Registration
When you sit down with one of our Sales or Finance specialists to fill out paperwork for your purchase, they will provide you with a breakdown of all the purchase costs, including purchase price and loan interest. This document also includes additional costs: sales tax, title transfer fees, vehicle registration, and dealer documentation fees. All of these add up to increase your bottom-line costs. These unavoidable costs represent a small percentage of your overall TCO. Fortunately, all of them except registration are one-time costs and can be added to the amount you finance. In addition, Idaho's vehicle registration fees are moderate.
Make the Right Move with Confidence
Understanding the total cost of ownership is about seeing the whole picture to understand what you are getting into when you purchase a car, not just at Mike White Ford, but anywhere.
While calculating the TCO for a new car can seem daunting, this information should help you make a sound decision that will help you get the car you need at a comfortable price and TCO. When all is said and done, you should get a car that will provide tremendous value for your money.
Personal vehicles provide you and your family with freedom and flexibility, enabling you to go where you want when you want, whether it's commuting to and from work or school, bringing home your groceries, or enjoying an adventurous road trip with the kids that you'll all remember fondly in years to come.
So get excited about shopping for your new car, but take into account the total cost of ownership. You'll feel confident about your choice when you make an informed decision. If you are in the market for a new or new-to-you car, visit one of the Mike White Ford showrooms in Coeur d'Alene or Sandpoint to see our line-up or test drive a new Ford. We'll do everything we can to help you find the right vehicle at the right price.