TRANSPARENT METHODOLOGY

How We Calculate

Transparency is important to us. Here's exactly how our tools work, where our data comes from, and the methodology behind our calculations and recommendations.

Which Car Should I Buy Tool

Our Approach

This tool uses a rule-based scoring system to match your needs with appropriate car types. It doesn't use AI or machine learning – just straightforward logic based on practical considerations.

Scoring Methodology

Each car type receives a score based on five key factors:

1 Budget Compatibility

We match car types to typical price ranges based on current market data. For example:

  • Under $15k: Compact sedans score highest
  • $35k-$50k: Compact/mid-size SUVs, hybrids, and EVs score highest
  • Over $50k: Luxury vehicles, mid-size SUVs, and EVs score highest

2 Family Size Requirements

Vehicle capacity directly impacts recommendations:

  • 1-2 passengers: Compact/mid-size sedans prioritized
  • 3-4 passengers: Mid-size sedans and compact SUVs prioritized
  • 5+ passengers: Mid-size SUVs receive highest scores

3 Primary Usage Pattern

Different vehicles excel at different tasks:

  • Daily commute: Fuel-efficient sedans, hybrids, and EVs
  • Family use: SUVs and crossovers with space and safety
  • Adventure: SUVs and trucks with capability
  • Work/business: Trucks and larger SUVs

4 Fuel Preference

If you specify a fuel type preference, vehicles matching that preference score higher:

  • Gasoline: Traditional gas vehicles prioritized
  • Hybrid: Hybrid vehicles score highest
  • Electric: EVs score highest
  • No preference: All types evaluated equally

5 Driving Environment

Where you drive affects what's practical:

  • City: Smaller, more maneuverable vehicles
  • Highway: Comfortable cruisers with good MPG
  • Mixed: Well-rounded vehicles
  • Off-road: SUVs and trucks with capability

Final Recommendations

We total the scores and recommend the top 3 car types. Each recommendation includes:

  • Typical price range (based on current market averages)
  • Specific pros and cons
  • Best use cases

Car Ownership Cost Calculator

Components Calculated

Our calculator includes five major cost categories:

1 Vehicle Purchase Cost

We calculate your loan using the standard amortization formula:

Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Where:

  • P = Loan amount (purchase price minus down payment)
  • r = Monthly interest rate (annual rate / 12)
  • n = Number of monthly payments (years × 12)

2 Fuel Costs

Calculated using your inputs:

  • Annual gallons needed = Annual mileage / MPG
  • Annual fuel cost = Annual gallons × Gas price per gallon
  • Total fuel cost = Annual cost × Loan term years

3 Insurance

We use your estimated annual insurance cost multiplied by the loan term. Insurance costs vary widely based on:

  • Your age and driving record
  • Location
  • Vehicle type and value
  • Coverage level

We recommend getting actual quotes before finalizing your budget.

4 Maintenance & Repairs

Estimated using industry averages that increase over time:

  • Years 1-2: $500 per year (basic maintenance)
  • Years 3-4: $1,000 per year (increased wear items)
  • Years 5+: $1,500 per year (major services and repairs)

These are conservative estimates for a typical vehicle. Luxury brands and performance vehicles typically cost more.

5 Registration & Fees

Estimated at $200 per year, covering:

  • License plate registration
  • State/local fees
  • Emissions testing where required

Actual costs vary by state. Some states charge more for newer or more expensive vehicles.

What's Not Included

Our calculator doesn't include:

  • Depreciation: While significant, it's not a cash expense unless you sell
  • Parking costs: Varies too much by location
  • Tolls: Highly dependent on your specific routes
  • Accessories and modifications: Optional expenses
  • Taxes: Sales tax varies by state and locality

Data Sources

Our information comes from:

U.S. Department of Energy (fuel economy data)
Insurance industry reports (insurance cost estimates)
Automotive market data (pricing and depreciation)
Consumer Reports and reliability studies
Industry publications and research

We use publicly available information and industry research as reference points, not real-time pricing feeds.

Limitations & Disclaimers

Our tools provide estimates and guidance, not guarantees. Actual costs vary based on:

Your specific situation and location
Market conditions at time of purchase
Individual vehicle condition and history
Your driving habits and maintenance practices

Always do additional research and get actual quotes before making financial decisions.