The Globe and Mail

But it is fair to point out that the new-vehicle marketplace is riddled with discounts that do complicate valuations. In addition, new-car values differ dramatically from region to region.

So we have broken out ownership costs on a kilometre basis and by category. Those who feel depreciation and financing don’t belong have the option of cutting those figures out of the final ownership cost calculation – restricting the numbers to black-and-white expenses for maintaining a vehicle and paying the very real cost of government.

Regardless of how many years you hold on to your car or whether you consider depreciation an important variable cost, car ownership represents a substantial and continuing financial commitment. There is no controversy about that. So in managing your family finances, it is critically important to understand how hard car ownership will hit your wallet.

In short, for most people a car is the No. 2 family expense behind housing. Therefore, for those who watch family finances, it makes perfect sense to look beyond the actual sticker price; it is only one piece of a much larger picture. Everything from fuel to insurance will take up major chunks of your transportation budget.

Also, if you are among those who consider depreciation a legitimate ownership cost you may be in for a surprise when comparing two vehicles with the same price. In short, some vehicles depreciate much faster than others.

Finally, if you are someone looking to rein in your car costs, the best choice is a smaller and consequently more fuel-efficient vehicle – like the Cobalt or any number of other compact and subcompact cars. Yes, in general terms, fuel costs are relatively minor compared to the price of insurance, financing and depreciation. But smaller cars also come with smaller price tags, thus a less substantial bite in terms of insurance and government expenses.

As for other costs, while maintenance and repairs do not consume a huge piece of the overall ownership cost of relatively new vehicles covered under three- or four- year warranties, there are still savings to be found in this area, minor as they might be in the first few years of ownership. Thrifty buyers might want to look over the maintenance schedule of any potential vehicle purchase and also ask the seller of a new model if maintenance is included in the purchase price, free of charge. With some auto makers, it is.

For those weighing a new-vehicle purchase against a used one, do note that repair and maintenance costs get higher as vehicles get older. According to DesRosiers Automotive Consultants, by year five the average annual repair cost of a vehicle is about $800, a figure that by year seven and thereafter rises to between $1,000 and $1,100 annually.

The bottom line: crunching ownership costs should not be just an obsessive-compulsive exercise for penny-pinching drivers. Knowing what you can expect to spend on transportation before you buy a new vehicle is critical for proper budgeting and for guiding purchase decisions.

As this table shows, quite a lot of money is involved in owning a vehicle.

Figures in chart are dollars per kilometre. Source: Canadian Automobile Association and Globe Drive research

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