Shoralis The true cost of a car: much more than the installment
The installment is only half the story
The biggest cost of ownership is the one you never see: depreciation. A car losing 15-20% of its value in the first year can cost more per month than the loan payment itself.
So budgeting "the payment is $500, it leaves my account" misleads. The real burden is measured by the money that never comes back on resale day.
Fixed costs get forgotten
Insurance, annual tax, inspection, scheduled maintenance, tires and parking add up to more than most owners estimate. Convert them to a monthly figure on top of the payment and the car's true monthly price appears.
The less you drive, the heavier these fixed costs weigh — at 200 km a month the per-kilometer cost multiplies fast.
Cash or credit?
Buying on credit keeps your down payment invested; if your portfolio earns above the loan rate, the difference works for you. Otherwise interest becomes a silent cost layer.
Compare two branches in the simulation: the cash buyer against the credit buyer who invests the down payment. The net-wealth gap after 5 years is the answer.
Own it or share it?
If you drive a few days a week, transit + car-sharing + taxis can deliver the same freedom without carrying ownership's fixed costs. The rough threshold is annual distance: below it sharing wins, above it owning does.
The easiest way to find your threshold is to simulate both lives side by side — one buys the car, the other logs a monthly sharing spend.
Compare two lives in Shoralis
The "Buy a car" template in Shoralis adds insurance, tax and maintenance to the line — not just the installment. In the alternative life, skip them and watch the 30-year net-wealth gap open.
Test how many months the car decision delays your home down payment goal under the pessimistic scenario — when the price of a decision becomes visible, negotiating with yourself gets easier.
Test this decision in the simulator
Run two lives side by side: with and without the decision. See the net-wealth gap in a projection of up to 30 years.
Open the simulator