1) What does this tool actually calculate?

It estimates your total cost of ownership over a chosen number of years by combining depreciation, inflation-adjusted running costs, and (optionally) opportunity cost on cash tied up.

2) Is this the same as a "monthly payment" calculator?

No. This tool focuses on ownership cost, not a finance quote. It can be used whether you pay cash or not, but it doesn't model loan APR, lender fees, or amortisation unless you add those costs yourself.

3) Why is depreciation included if I don't "pay" it monthly?

Depreciation is the estimated value you lose between purchase and resale. Even though it's not a bill, it's often one of the highest costs of owning a car.

4) How is the depreciation modelled?

The calculator applies a depreciation curve or rate (based on your "new vs used" selection) to estimate the car's value each year, then totals the loss across your holding period.

5) What is "salvage value" or "exit value"?

It's the estimated value of the car when you sell it at the end of your ownership period. The difference between the purchase price and the exit value is the depreciation loss.

6) What counts as running costs?

Typically: insurance, fuel/charging, maintenance, tax/registration, parking/tolls (and any other yearly costs you enter). These are summed as a baseline annual cost.

7) Why do running costs grow with inflation?

Because many real-world costs (repairs, insurance, parts, labour, fuel/energy) can increase over time. The tool applies your chosen inflation rate so you can test how that changes totals.

8) What is "opportunity cost" in this tool?

It's an optional estimate of the trade-off of having money tied up in the car (purchase + running costs) instead of being available for other uses. It's shown as a separate layer so you can include or exclude it.

9) Is opportunity cost a real charge I'll pay?

No. It's not a bill. It's a scenario lens based on the rate you choose. If you prefer out-of-pocket costs only, you can switch it off.

10) Does the tool include unexpected repairs?

Only if you add them to your maintenance (or another cost field). The calculator can't predict random failures, so the outputs are directional.

11) Does it include taxes, fees, or city charges (ULEZ, congestion, tolls)?

It includes anything you enter. If you pay an annual fee or frequent tolls, add them under tax/registration or parking/tolls (or a similar field) so they are counted.

12) Can I compare "buy new" vs "buy used"?

Yes. The tool applies different depreciation behaviour based on the condition. Saving scenarios make it easy to compare totals and cost-per-month across options.

13) What does "cost per month" mean here?

It's the total ownership cost spread evenly across months: cost per month ≈ (total cost ÷ years) ÷ 12. It's a way to compare scenarios, not a guaranteed monthly bill.

14) What if my mileage is higher than average?

Higher mileage usually affects resale value and maintenance. This tool doesn't auto-adjust for mileage, so reflect that by using a lower exit value and/or a higher maintenance cost.

15) Why do my results look very sensitive to the holding period?

Depreciation often hits hardest early on, while running costs accumulate over time. Changing the hold length shifts the balance among those components.

16) What's the difference between "total cost" and "running costs total"?

Running costs total = insurance + fuel + maintenance + tax + parking (grown by inflation over the years). Total cost = depreciation loss + running costs total + optional opportunity cost.

17) Does the calculator produce an exact real-world prediction?

No. It's a comparison tool based on your assumptions. Actual resale prices, fuel/energy costs, and repairs vary.

18) How should I use this tool responsibly?

Use it to compare scenarios with consistent assumptions (same inflation rate, similar running cost estimates), then adjust inputs to test sensitivity. Treat outputs as illustrative, not precise forecasts.

19) What happens when I save scenarios?

Saved scenarios let you compare purchase prices, hold periods, inflation rates, and cost breakdowns side-by-side to see what drives differences.

20) What are the biggest drivers most people see?

Often: depreciation (in the early years), running costs (over longer holds), and opportunity cost when the upfront cash amount is large, or the chosen rate is higher.

Real Car Cost & Depreciation Calculator

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Disclaimer: This calculator is for educational purposes only and does not provide financial advice.