1. MSRP vs. Out-the-Door Price: Don't Get Shocked
Many first-time car buyers only prepare enough money for MSRP, forgetting the huge "Out-the-Door Price" that can be 10-15% higher. Mandatory fees include:
- Sales Tax: 0% (Oregon, Delaware) to 10%+ (California, Washington). Calculated on vehicle value after trade-in deduction.
- Dealer Doc Fee: $85 (CA) to $900+ (FL). This fee is negotiable!
- Title & Registration: DMV fees for vehicle title and registration, varies by state.
- EV Tax Credit: Federal tax credit up to $7,500 for eligible electric vehicles.
2. Monthly Operating Costs in the US
Owning a car in the US includes many hidden costs. VNIT's tool has detailed them:
Fixed Costs (Even if you don't drive, you still pay)
- • Car Insurance: $100-$300/month depending on age, driving history, and state
- • Parking: $50-$500/month depending on city
- • Car Depreciation: Loses 15-20% value in the first year
Variable Costs (The more you drive, the more you pay)
- • Fuel (Gas/Electric): Depends on miles and MPG/MPGe
- • Maintenance: $50-$200/month depending on vehicle type
- • Repairs: Unpredictable costs
3. The Savings Battle: Gas vs. Electric Vehicles
The shift to electric vehicles in the US is very strong thanks to EV Tax Credit ($7,500) and low operating costs. Compare to see clearly:
- Electric vehicles save approximately $0.10-$0.15/mile in fuel costs compared to gas cars.
- Electric vehicle maintenance costs are typically 40-50% lower due to fewer complex mechanical parts.
- EV Tax Credit up to $7,500 significantly reduces out-the-door price for eligible electric vehicles.
Frequently Asked Questions
How much does it cost to operate a car monthly in the US?
Operating costs include gas, insurance, parking, and maintenance. US average: Sedans around $400-$600/month, SUVs/Crossovers around $500-$800/month, and luxury cars can reach $1,000+/month. Use VNIT's tool to get accurate numbers based on your miles driven and your state.
How much money do electric vehicles save compared to gas cars in the US?
Electric vehicles have a major advantage in fuel costs (only 1/3 of gas cars) and receive EV Tax Credit up to $7,500. After 5 years of ownership, electric vehicles can help you save $5,000-$15,000 in total ownership costs compared to gas cars in the same segment, depending on miles driven and electricity/gas prices in your state.
How much income should I have to finance a car in the US?
Safe rule: Total loan payment + Operating costs should not exceed 20% of net income. For example: If operating costs $500 + loan payment $400 = $900, then your income should be $4,500/month or more to ensure financial safety. If it exceeds 30%, you're at high financial risk.