Part 1: Rethinking Car Ownership: From Expense to Investment –
Introducing Cost Per Mile
In today's economy, owning a vehicle is often viewed as a necessary but burdensome expense. It feels like you're constantly paying out money—from the loan payment to the gas pump to the occasional surprise repair bill. However, at DeBoer's Auto, we encourage a paradigm shift: think of your car not in terms of those sporadic bills, but as an investment measured by Cost Per Mile (CPM).
This metric—total ownership costs divided by the miles you drive—provides a much more accurate picture of how affordable your car truly is. It helps you maximize its value over its entire lifespan.
What Does Your Car Truly Cost You?
Most drivers are surprised when they look past the monthly payment. According to the American Automobile Association (AAA)'s 2023 "Your Driving Costs" report, the average annual cost of owning and operating a new vehicle in the U.S. is approximately $12,182, which works out to about $1.02 per mile based on driving 12,000 miles per year.
This cost includes many items, but the single largest factor is depreciation (the loss of value over time), which accounts for around 40% of the total. The rest is made up of things like fuel, insurance, and maintenance/repairs. For used vehicles, the CPM can often drop significantly, down to $0.60–$0.80 per mile with proper care.
Shifting from Reactive Spending to Proactive Investing
By focusing on CPM, you move beyond reactive spending—like being hit with an unexpected breakdown that averages $500–$1,000 per incident (per AAA)—to proactive strategies that lower your long-term costs.
This is where simple maintenance becomes a smart investment. Regular oil changes and tire rotations are not just expenses; they are high-return investments. While they extend your engine life by 20–30%, their biggest payoff is protecting your car’s resale value. A vehicle with a documented, consistent service history significantly reduces depreciation, protecting the single largest cost factor you face. You are literally saving money in the long run by spending a little now.
The Power of Knowing Your CPM
For the average driver, calculating your CPM starts by tracking your expenses. You can use simple spreadsheets or apps like Fuelly to log things like your purchase price, loan interest, gas, and service bills.
This simple tracking empowers you to budget effectively and make informed decisions, transforming your car into a reliable asset rather than a financial drain. By optimizing your CPM, you ensure you're investing in miles, not mishaps, helping people live life uninterrupted by unexpected car troubles.
Key Takeaway
Start tracking your CPM today to uncover hidden savings. We are here to help you get started.
Contact Us: We're Here to Help You
Schedule a consultation with one of our service advisors at DeBoer's Auto to review your vehicle's history and plan your maintenance calendar. Pre-book your next service to avoid surprises and ensure you’re investing in miles, not mishaps.
