Summer 2009
Low Cost of Ownership!
by Rob Gaskell, Jr.
A Recent strategy that many car companies have adapted lately is advertising just how cheap it is to own their vehicles. One car company claims that they have the lowest cost of ownership in their class. The important thing to note during their commercial is the fine print that says "for the first five years". What they don't tell you is what factors to consider when evaluating cost of ownership, and how they reduce the advertised cost of ownership.
The largest cost of ownership is of course the purchase price and finance charges related to the car loan. Fuel economy is another large portion of the cost of ownership, since obviously cars with lower mileage ratings will have larger fuel bills. Average insurance rates for a particular vehicle model are another cost of ownership consideration, although geographic location, driving records, and young drivers in the household can have a significant effect on insurance rates. Cost of maintenance is a big one, and is certainly the easiest for a car company to manipulate. By recommending extended engine oil change intervals, extremely infrequent transmission services if such services are recommended at all, and a lack of recommended maintenance for a multitude of other vehicle systems and components, are all ways that car companies bring significant reductions to the advertised cost of ownership.
These low-cost maintenance schedules work reasonably well for drivers that plan to replace their vehicles with a new model every 3-5 years. Unfortunately, replacing a vehicle every 3-5 years is very expensive and becoming less and less common as bedgets are tightened and credit is hard to come by. While low maintenance costs are certainly good news, it is becoming more and more important that drivers look ahead, and consider the cost of maintenance out past 5 years, even out past 10 years or more.
Recommending engine oil changes every 7,500-10,000 miles has become more and more common among car makers, and extending transmission services to 100,000 miles is quite common as well. Todays engines and transmissions are, for the most part, quite dependable, and most of them have the potential to outlast the rest of the vehicle. One of the most significant factors in ensuring the longevity of engines, transmissions, and other mechanical components, is lubrication. The better an engine is lubricated, the less it wears. As an engine runs, metal components rub together, shedding microscopic particles that are carried by the oil. Fuel and combustion gases blow past the pistons and into the crankcase, contaminating the oil. Moisture from the atmosphere seeps its way into the crankcase, further contaminatin the oil. As an engine sits overnight, oil that has coated many of the components drains away and returns to the oil pan. A significant amount of an engine's wear can occur on cold start-ups, and the best way to reduce this wear is by using synthetic oils, which tend to cling to components rather than drain away.
While the oil filter removes most of the larger metallic contamination, it does little or nothing to remove moisture, fuel and other contaminants. As the engine runs, oil is continually circulated through the filter before it goes on to lubricate the engine. As more and more contaminants enter the oil filter and are trapped in the filter media, the more clogged it becomes. Eventually an oil filter will completely stop flowing oil, at which time oil is allowed to bypass the filter, thereby allowing continued engine lubrication without filtration. Unfiltered oil continues to pick up more and more contaminants, causing more and more engine wear. Contaminated oil begins to sludge up in narrow oil passages throughout the engine, reducing lubrication to some parts of the engine. While the damage done to the engine is usually not noticeablefor the first few years, its also important to note that it is not reversible, and that it adds up over time. While some engines are more prone to damage and wear due to extended oil change intervals, all engines can benefit from increased maintenance. The same goes for all transmissions, differentials, and other components that require lubrication. Preventive maintenance truly is an investment, and over the long run, is much cheaper than premature engine and transmission replacements. Typical engine replacements usually exceed $5,000 for gas engines, and diesel engines can exceed $14,000. Transmissions can range from about $2,500 to over $6,000.
While preventive maintenance costs can seem high at first glance, avoiding a surprise engine replacement is always worth it. Of course, if the engine and transmission are in great shape, and the rest of the vehicle is falling apart, the situation won't be much better. This is why preventive maintenance including regular vehicle inspections is crucial to increasing the longevity of your vehicle. In the long run, preventive maintenance bills and repairs are much cheaper than a monthly car payment. Keeping up on these repairs, and avoiding the need for major work that can be prevented, will help ensure that "Low Cost of Ownership" is more than just a short-term gimmick.
Rob Gaskell, Jr. Account Manager
Fleet Service Northwest