Five-year cost of owning a 1998 car is $37,322

Copyright © 1998 Nando.net
Copyright © 1998 The Associated Press 

DETROIT (March 19, 1998 http://www.nando.net) -- The 
average cost of owning a new vehicle may be down for the 
first time in a decade, a research firm said.

A 1998 car costs $37,322 to own over five years, according 
to IntelliChoice Inc. That cost includes depreciation, 
fuel, financing, maintenance, repairs, fuel and state fees.

The estimate, while even with last year, was based on gas 
at $1.22 per gallon. Fuel prices since have fallen to less 
than $1 per gallon in many states.

The real cost of owning a vehicle is probably down for the 
first time since IntelliChoice began tracking such data 
since 1987, said Peter Levy, the president of 
Intellichoice.

Levy also credited higher-quality cars for the drop in 
costs. Many vehicles now can go 100,000 miles before some 
routine maintenance is needed.

"Repairs continue to be a smaller and smaller portion of 
expected costs," he said.

IntelliChoice estimates that the average cost of owning a 
1998 light truck -- a category that includes pickups, sport 
utility vehicles and vans -- is $32,203.

While light trucks generally are more expensive than cars, 
their ownership costs are lower because they don't 
depreciate as much, said Charles Donaldson, the director of 
research for IntelliChoice.

"Everyone wants a truck," he said. "The demand for trucks 
is so great the supply isn't always there."

The California-based company each year publishes car and 
truck guides with detailed cost breakdowns for each model. 
The 1998 guides were released this month.

IntelliChoice said the largest single cost of a 1998 car is 
depreciation, which represents 36 percent of the total. 
That is followed by insurance (24 percent), financing (15 
percent), fuel (10.5 percent), maintenance (9 percent), 
fees (3 percent) and repairs (2.5
percent).

For light trucks, the single largest cost is also 
depreciation, at 31 percent. That is followed by insurance 
(23 percent), fuel (15 percent), financing (15 percent), 
maintenance (10 percent), fees (3 percent) and repairs (3 
percent).

For 1998, IntelliChoice named the Honda Accord the best car 
value under $20,000, and the Mercedes-Benz C280 sedan the 
best car value over $20,000.

The award represents the best relationship between cost to 
own and price.

In trucks, IntelliChoice said the best value under $18,000 
is the Toyota Tacoma. The best truck value over $18,000 is 
the GMC Sierra, the firm said.

For SUVs, InteilliChoice said the Jeep Wrangler is the best 
value under $25,000, and the Toyota 4Runner is the best 
value over $25,000.

By JOHN HUGHES, Associated Press Writer