Driving up the cost

Finally we settled with the insurance company for the car, which was of course ruled a total loss. As of yesterday the wreck is out of our driveway, leaving me to ponder just what an expensive luxury owning a car is. I read once that depreciation alone is the most expensive cost to owning a car, far outstripping maintenance, insurance, and even gasoline (although maybe that was written before the latest surge in gas prices).

So I did the math. We bought that car just two years ago, at about the blue book value. We received a settlement for the car at approximately the current blue book value. Certainly we would have liked it if the settlement had been a bit on the higher end of the range, but my point is that the cost was about average each time, sans any bargains or rip-offs.

We took good care of that car, giving it all the regular check-ups and oil changes, and until the fateful crash it was never involved in any other accident. Yet the total loss in value of that car averaged over $100/month during the time that we owned it! Talk about depreciating assets! When you actually do factor in all the other costs associated with running a vehicle, then it becomes a very pricey convenience indeed.