Drive Pricing estimation system calculates the additional fees you may not have included when considering your next vehicle purchase. These extra costs include: depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance, and repairs
Drive pricing estimation system is proprietary data 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. The components of Drive Pricing estimation system are depreciation, interest on financing, taxes and fees, insurance premiums, fuel, maintenance, repairs and any federal tax credit that may be available. For us to estimate certain mileage-dependent costs, we assume that vehicles will be driven 15,000 miles per year. For a used vehicle, we calculate the years the vehicle has been driven using the nominal difference between the current calendar year and the vehicle’s model year, and assume that it was driven 15,000 miles during each of those years.
How We Calculate Drive Pricing Estimations
- Ownership expenses are estimated for a five-year period
- You will drive 15,000 miles per year
- You are financing the vehicle using traditional financing, not lease financing
- You have an above-average credit rating for the purpose of determining your finance rate
- You are making a 10% down payment on the vehicle at purchase
- Your loan term is 60 months
Using proprietary formulas, we calculate the five-year costs for the seven cost categories that make up the Drive Pricing Estimation(depreciation, insurance, financing, taxes & fees, fuel, maintenance and repairs). We also take into account any applicable federal tax credit.