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1300 American Blvd. West, Bloomington, MN, 55420

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Dealership Info

Phone Numbers:Sales Hours:
  • Mon - Thu9:00 AM - 8:00 PM
  • Fri - Sat9:00 AM - 6:00 PM
  • SunClosed
Service Hours:
  • Mon - Fri7:00 AM - 6:00 PM
  • Sat8:00 AM - 4:00 PM
  • SunClosed
Parts Hours:
  • Mon - Fri7:00 AM - 6:00 PM
  • Sat8:00 AM - 4:00 PM
  • SunClosed
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How to Calculate Cost of Ownership


How Much Does It Cost to Own a Car

When making the decision to purchase a vehicle, it is important to consider all the expenses associated with ownership. It is vital to remember that monthly payments only cover a portion of the total cost and can potentially be more expensive than anticipated. At Motorwerks BMW, our finance team is committed to helping you make a well-informed financial decision that fits within your budget.

Typical Car Ownership Expenses

When contemplating the purchase of a vehicle, it is crucial to factor in all the associated costs that come along with owning it. By accurately assessing the total expenditure, you can ascertain if it is within your means. This knowledge will empower you as you commence your search for the perfect vehicle. It is important to consider the supplementary expenses that accompany the purchase of a car. Ensuring these aspects align with your financial resources is imperative. To gain further insights into the financial implications of acquiring a vehicle, please proceed with reading.

Monthly Car Payment

When people are considering buying a vehicle, they often base their decision on the monthly payment. According to a report from Experian in August 2023, the average monthly payment for a new vehicle is $725. However, it's important to remember that when purchasing a vehicle, taking financing costs into account along with the purchase price can lead to significant savings. When you take out a loan, the interest rate you are given is a crucial factor in the overall expenses. For instance, if you buy a $30,000 car with a 6% interest rate spread over 60 months, you will end up paying $4,799.04 in interest, which means an additional expense of $179 per month. If you are considering applying for a car loan, it is recommended that you search for the lowest possible interest rate. This will help to lower your monthly payments and make the loan more affordable in the long term.

Car Insurance

If you no longer use your vehicle and want to avoid paying for it, considering gap insurance can be a smart choice. This insurance can cover the remaining balance on your vehicle in case of an accident. The cost of the insurance will depend on factors like the coverage you choose, your driving history, and the value of your vehicle. When thinking of buying a vehicle, it's crucial to get insurance quotes from reputable companies. This way, you can accurately calculate the monthly insurance cost and make sure it fits your budget.

Fuel

Determining fuel expenses can be challenging due to their fluctuation depending on market conditions, supply, and other unpredictable factors. According to data provided by the Automobile Association, the average American driver spends approximately $2,700 annually or $225 monthly on gasoline. This estimation is based on driving 15,000 miles per year with an average cost of 18 cents per mile. To save more money at the gas station, using apps to locate the cheapest fuel nearby is a wise decision. However, it's important to consider that driving a longer distance to save a few cents per gallon may not be advantageous in the long term.

Registration and Fees

Buying a vehicle can be overwhelming, especially considering the taxes and fees involved. However, it is crucial to take into account how these costs can impact your overall budget. Your car insurance rates are influenced by various factors, including your location and the model of the vehicle you choose. By understanding these factors, you can make an informed decision when selecting a vehicle. If you reside in Florida, it is important to conduct research on the specific fees and registration expenses associated with your vehicle's value to effectively plan your budget. To accurately calculate the fees and taxes due on your vehicle, it is essential to verify the corresponding amounts in your area and specifically for your vehicle. On average, vehicle owners usually incur an annual cost of $675 for these expenses.

Maintenance and Repairs

If you prioritize the appearance and performance of your vehicle, don't let cost concerns hinder you. It's worth mentioning that, based on Bank rate's research, the average American spends around $370 to $786 on car maintenance per year. To keep your vehicle running smoothly, it is advisable to budget $31 to $66 per month for maintenance expenses. Budgeting for maintenance and repair costs is crucial for keeping your vehicle in its best condition. Our service center offers cost-effective solutions for these requirements and often provides special promotions to help you save even more.

Find a Car You Can Afford at Motorwerks BMW

At Motorwerks BMWs in Bloomington, MN, our dedicated team aims to help you make the most of this information so that you can accurately estimate the overall expenses of owning a vehicle. We fully comprehend the importance of considering the total cost of ownership. Rest assured, we prioritize understanding your specific requirements and will put in every effort to locate a vehicle that perfectly aligns with your lifestyle.

Motorwerks BMW 44.859553, -93.295735.