The Real Cost of Owning a Cheap, Luxury, and Super Car: What You Need to Know

If you’ve ever wondered how much it actually costs to own different types of cars, from budget-friendly models to luxury and supercars, you’re in the right place. In this guide, we’ll break down the annual expenses associated with owning a cheap car, a luxury car, and a supercar. Plus, we’ll discuss how much you should be earning to comfortably afford each level of vehicle.

The Costs of Owning a Cheap Car: Toyota Camry SE (2024)

For the budget-conscious buyer, let’s take the 2024 Toyota Camry SE, a basic yet reliable car. According to Edmunds’ True Cost to Own calculator, here’s what you can expect over five years:

• Depreciation: $1,449 per year
• Taxes and Fees: $3,578 over five years
• Financing (5 years, 10% down): $6,361
• Fuel (15,000 miles/year): $2,510 per year
• Insurance: $1,432 per year
• Repairs and Maintenance: $4,691 over five years

Total Annual Cost: Approximately $9,100

Income Needed: To follow the 10% rule for transportation costs, you’d need to earn at least $60,000 annually just for car payments. When including insurance, fuel, and maintenance, your salary should be around $109,000 per year.

The Luxury Car: Mercedes GL-Class SUV (2024)

For a luxury vehicle, the 2024 Mercedes GL-Class SUV comes with significantly higher costs:

• Depreciation: $7,845 per year
• Taxes and Fees: $1,500 per year
• Fuel (18 MPG average): $3,745 per year
• Insurance: $3,000 per year (can vary by location)
• Maintenance and Repairs: $2,618 per year

Total Annual Cost: Approximately $18,708

Income Needed: Following the 10% rule, you’d need a salary of at least $137,000 per year just for payments. With all other expenses, you should be earning $180,000-$190,000 annually to comfortably afford this luxury SUV.

The Supercar: McLaren Artura (2023)

For those dreaming of a supercar, the McLaren Artura costs can be steep:

• Depreciation: $13,250 per year
• Taxes and Fees: $2,000 per year
• Fuel: Approximately $70 per fill-up (based on limited driving)
• Insurance: $4,500 per year
• Maintenance and Repairs: At least $3,000 per year
• Financing: $7,630 annually (5-year term)

Total Annual Cost: Approximately $31,385

Income Needed: With a $3,500 monthly payment, you should be making at least $420,000 per year. Factoring in all other costs, you’ll need a salary north of $600,000 annually to afford a supercar comfortably.

Key Takeaways:

1. Cheap Cars Still Cost: Even a budget-friendly car like the Toyota Camry can take up to 15% of your annual income.
2. Luxury Cars Demand More: A luxury vehicle can cost double the price of a budget car over time due to insurance, fuel, and maintenance.
3. Supercars Are a Serious Commitment: Supercars can require salaries of $600,000+ per year, making them unattainable for most without significant wealth.

When it comes to car ownership, it’s essential to consider not just the sticker price but the total cost to own, including depreciation, insurance, fuel, maintenance, and financing. Always follow the 10% rule to keep your finances in check and avoid overcommitting to a vehicle you can’t afford.

By following these guidelines and thoroughly understanding the costs involved, you can make a more informed decision about which type of car fits your financial situation best.