Michael Chuang breaks down what a $100,000 car actually costs over three years: $70,000 out of pocket when you add financing, maintenance, sales tax, and depreciation. Motor Envy's subscription model claims to cut that number significantly by bundling everything into one stated price.
Questions this video answers
$100,000
$10,000
$10,000
$10,000
$60,000
Chapters
So I think to really drive home the total cost of ownership when you buy a car, we must look at this illustrative example. Let's say you found a beautiful.
Car they've always wanted. It's $100,000.
Let's say you.
Pay the $100,000 and.
You get a loan to buy this car.
Your financing cost is $10,000. In addition, during.
The course of ownership, you also maintain.
And service the car.
Which is an additional.
$10,000.
Oh, and by the way, when you bought this car for $100,000, you had to pay $10,000 just in sales tax alone. So now, in.
Addition to buying the.
Car, you've already.
Spent $30,000.
Over the course of ownership. Three years down the road, you want to sell this car. And let's say the car is now worth $60,000. So your total cost out of pocket is the $40,000 in depreciation you had on the car, which is your cost, plus the $30,000 that you paid throughout the life of the car. That's a $70,000 out of pocket expense that you spent on the car. Listen, there is.
One thing that I'm pretty confident about.
That when you get your car subscription from Motor Envy, your total out of pocket cost will be far lower than that.
And in fact.
We will tell you with every single car, with every single contract, how much exactly you're going to pay for the duration of your time with the car.
