True Cost to Own

TIP OF THE DAY

True Cost to Own

Website calculator helps determine car's true cost

BY MARSHALL LOEB AND BRENDAN JANUARY
CBS MarketWatch

One of the most difficult questions to answer when buying a car is how much it will cost a buyer over time -- in maintenance and gas, for example.

A calculator developed by auto website Edmunds.com can help.

The tool, called ''True Cost to Own,'' considers seven categories that affect the value of a car over its lifetime: depreciation, financing, insurance, taxes and fees, fuel, maintenance and repairs.

To find the tool, visit http://www.edmunds.com/apps/cto/CTOintroController

Simply type in the car, its year and price, and the tool will determine how much the car will cost over five years. Edmunds says its statisticians use data and its own algorithms to calculate the costs.

This can be helpful if you are considering two similar car models that are also close in price. One may appear cheaper in the showroom -- but it could wind up costing you more on the road.