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Estimated cost of operating a 1992 Chevrolet Caprice station wagon


     
     How much does it cost to operate a typical car today?  Let us pick a 
     1992 Chevrolet Caprice station wagon and estimate the cost of 
     operating it.  The purchase price new is $18700.  It is purchased 
     with $4700 down and an auto loan of $14000 at 10% for 5 years.



     Year  Year-end   Depreciation  Tax  Interest  Repair  Cost of
           wholesale                     on loan   costs   Operation
           value                                          
   _________________________________________________________________ 
   
      1    $15,025       $3675     $686   $1298      $0     $6984
      2     11,825        3200      540    1060     100      6225
      3       7700        4125      352     797     100      6699
      4       6625        1075      303     507     100      3310
      5       5200        1425      238     186     400      3574
      6       4150        1050      190             500      3065
      7       3650         500      167             500      2492
      8       2225        1425      102             500      3352
                                                          _________
                                                           
                                                   Total    35701




     Notes and assumptions.
        Insurance: $500 per year
        Gasoline: $750 per year
        Auto registration, county sticker, safety inspection, etc: $75 /yr
        Personal property tax rate: 4.57%
        Loan: $14,000 at 10% for 5 years
        Down payment: $4700
        Year-end wholesale values: from Oct 92 bluebook
        Repair costs: based on the yearly repair costs for my own 1979
           Chevrolet station wagon


     Cost of operation = Depreciation + Tax + Interest + Repair costs
                         + Insurance + Gasoline + Auto registration, county 
                         sticker, safety inspection, etc.



   Oct 1992



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