🚗 The Real Cost of Car Ownership in 2025: What You Need to Know

Jun 20, 2025

Whether you’re in the market for a brand-new car or considering a pre-owned model, understanding the true cost of owning a vehicle is essential to making a smart, confident decision. At Schlossmann Honda City, we want you to feel empowered with the knowledge you need—not just to drive off our lot, but to budget for the long haul.

Here’s a breakdown of the key costs to consider when calculating the total price of owning a vehicle in 2025.

1. Monthly Payments

This is usually the most visible cost—and for good reason. Whether you’re leasing or financing, your monthly payment depends on:

Down payment
Loan term
Interest rate
Vehicle price

In 2025, average monthly payments hover around $730 for new vehicles and $530 for used ones (source: industry averages). Leasing often offers lower monthly costs but may come with mileage restrictions.

Tip: Shop during promotional periods to take advantage of lower APRs and cash-back offers.

2. Insurance

Auto insurance premiums vary based on your:

Age and driving history
Vehicle make and model
Coverage level
Location

In Wisconsin, the average annual insurance cost is about $1,400, but premiums for luxury or performance vehicles can be higher.

Tip: Check insurance quotes before committing to a specific model.

3. Fuel Costs (or Charging, for EVs)

Fuel prices fluctuate, but as of mid-2025, gas prices average around $3.60/gallon. A fuel-efficient vehicle (30+ MPG) could save you thousands annually over a gas guzzler.

If you’re going electric, factor in:

Charging station access (home or public)
Electricity rates
Time to charge

Tip: Schlossmann Honda City offers several hybrid and EV options that can dramatically reduce this cost.

4. Maintenance & Repairs

Even with a warranty, maintenance is a real and recurring cost. Think:

Oil changes ($60–$90)
Tire rotations
Brake replacements
Battery checks

Some vehicles cost $500–$1,000+ annually for upkeep, depending on age, mileage, and brand. Luxury brands may be pricier to maintain.

5. Depreciation

This is often overlooked, but it’s the largest hidden cost. New cars typically lose 20–30% of their value in the first year and around 50% after five years.

Buying used or choosing models with strong resale value (like Toyota, Subaru, or Honda) can minimize depreciation’s impact.

Tip: Want to keep value high? Stick to scheduled maintenance and keep mileage moderate.

6. Registration, Fees, and Taxes

Don’t forget to include:

Sales tax (5%, more or less in some counties)
Registration and title fees
Emissions or inspection costs (where applicable)

These can add $1,000+ upfront to your purchase cost.

Summary: What You Might Really Spend

Cost Category	Annual Estimate (New Vehicle)
Monthly Payments	$8,760
Insurance	$1,400
Fuel/Charging	$1,200–$2,400
Maintenance/Repairs	$500–$1,000
Registration/Taxes	$1,000+ (mostly upfront)
Total (approx.)	$12,860–$14,560

Drive Smart with Schlossmann Honda City

At Schlossmann Honda City, we’re here to help you not only choose the right vehicle—but also to understand how it fits into your financial life. Whether you’re comparing models, thinking about trade-ins, or considering going electric, we’ve got the resources and team to guide you every step of the way.

📍 Visit us in Milwaukee, 3450 S 108th Street
📞 Call to schedule a consultation, 866-812-4229
🖥️ Check our current finance specials

Tags: Auto, Milwaukee, Schlossmann Honda City
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Schlossmann Honda City