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True Cost to Own ratings at Edmunds Page 1 of 3 Close Window s ~ True Cost to OwnSM (TCO) About True Cost to OwnSM Edmunds.com's True Cost to OwnSM is a proprietary tool that helps you estimate the total five-year cost of buying and owning a vehicle - including some items you may not have taken into consideration. A benefit of using this tool is that you can easily compare the five-year totals for different vehicles and make a more informed choice. The costs that we estimate include depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance and repairs. In order to estimate certain mileage-dependent costs, we assume that vehicles have been driven an average of 15,000 miles per year. For used vehicles, we calculate mileage using the nominal difference between the current calendar year and the vehicle's model year. Note that TCO is a comparative tool, not a predictive tool - your actual five-year cost of owning a particular vehicle will vary depending on your personal circumstances, such as your driving history and the number of miles you drive. How We Calculate True Cost to OwnSM The True Cost to OwnSM calculations use the following set of assumptions: • Ownership expenses are considered over a five-year time span • You will drive an average of 15,000 miles per year • You are financing the vehicle using traditional financing, not lease financing • You are in the Gold credit tier for the purpose of determining your finance rate • You are putting a 10% down payment on the vehicle at purchase • Your retail contract term is 60 months • You represent the average demographic for insurance rate consideration Using proprietary formulas, we calculate the five-year costs for the seven cost categories that make up the TCO (depreciation, insurance, flnancing, taxes & fees, fuel, maintenance and repairs). We take into account widely avaifable manufacturer to customer cash rebates on new cars, which may result in a lower net cost of ownership. However, we do not account for other types of cash rebates or incentives due to the variability in the offers as well as the eligibiliry rules for such offers. Explanation of True Cost to OwnSM Terms Depreciation This is the amount by which the value of a vehicle declines from its purchase price. The purchase price employed for new cars is the vehicle's True Market ValueoD price in your state (including typical equipment and destination charge). The purchase price employed for used cars is the vehicle's Private Party True Market Values price in your state. The resale value assumes the vehicle will be in "clean" condition, will be driven an average of 15,000 miles per year, and will be sold to a private party. Close window Insurance This is the estimated average annual insurance premium being charged by insurers in your state. The premium has been determined based on annual premium data for defined driver profiles and coverages (liability, comprehensive and collision) from the four largest insurers in each state (except Massachusetts, which is based on premium data from one large insurer). While this information is specific to vehicle make, model, model year and body type, your personal information is not taken llltn•//-unanxu arim»rul~_~•~rrx/~nr.~/.,tnl7l~n~,+ ;cr. , . . . _ 1 1.