
Cost of Vehicle Ownership in Roanoke, VA
Calculating Vehicle Cost of Ownership in Roanoke, VA
What Is the Total Cost of Owning a Vehicle?
Being able to afford a Mercedes-Benz is an accomplishment in itself. However, first-time buyers are often surprised that the actual cost of a Mercedes is much more than what’s advertised. This is because aside from the initial purchase price, the total cost of ownership must be considered as well.
Also known as TCO, the total cost of ownership is the original purchase price of the vehicle plus all of the expenses from owning and maintaining it during its lifespan. Calculating this can be confusing especially if you’re a first-time car buyer, but you don’t need to do it alone. We at Mercedes-Benz of Roanoke have made a handy guide on how to calculate the TCO for Mercedes-Benz vehicles and to keep the costs down.
Monthly Payments
The monthly car payment normally takes up a big chunk of the TCO. According to credit reporting agency Experian, a new car entails an average monthly payment of $726 as of 3Q 2023. However, keep in mind that this varies depending on the vehicle's make and model. For more expensive makes like Mercedes-Benz, the monthly payments can be much higher. That’s why many budget-conscious buyers opt for pre-owned models, which Experian pegs at $500 a month on average. Interest can also make your monthly payments even higher, so be sure to secure a financing plan with a low-interest rate.
Depreciation
Once it’s sold and driven off the lot, even a new Mercedes-Benz will lose its value. How fast it depreciates also varies from one model to the other. Mercedes Benz C-Class sedans, for example, have been known to depreciate rather quickly. On the other hand, the timeless G-Wagon appears to be just as resilient in retaining its value. Industry guides like the Kelley Blue Book are your best resource for knowing how much your vehicle depreciates over time.
Fuel Cost
How much fuel your Mercedes-Benz consumes also affects its TCO in the long run. A brand-new EQS hybrid, for example, might have a lower cost of ownership because of its great fuel economy. As a rule of thumb, compare the annual mileage of your chosen vehicle with current fuel prices. Doing so will help you determine the regular fuel cost for your Mercedes-Benz.
Maintenance and Repairs
High-end vehicles like those from Mercedes-Benz tend to cost more to maintain and repair. Maintenance expenses cover regular oil changes, tire rotations, brake inspections, and other routine procedures. Check the maintenance schedule and warranty coverage of your chosen model and use that to estimate the long-term vehicle maintenance cost.
Car Insurance
While the cost of insurance also varies by make and model, Mercedes-Benz vehicles are often at the upper tier. It can also be affected by your driving history, credit score, your location, and, in the case of pre-owned cars, the current condition of the vehicle. We recommend asking multiple insurance providers for quotes so you’ll have a better idea of the annual cost of coverage for your preferred model.
Taxes
Depending on where you live, you will be subjected to sales tax, registration fees, and other applicable tax rates. In Virginia, it is required to pay a 4.15% sales tax for any vehicle purchased within state lines. Hybrid and electric vehicles are also eligible for a tax credit of up to $2,500.
Find a Mercedes-Benz You Can Afford at Mercedes-Benz of Roanoke
Calculating the total cost of car ownership is an important step to ensuring your dream car doesn’t become a financial headache later on. By considering the factors mentioned above, you can make an informed decision. And if you’re ready to get your own Mercedes-Benz, visit Mercedes-Benz of Roanoke in Roanoke, VA. We’ll help make your dream of owning a Mercedes a reality.