Every important result should be explainable.

TrueCarCost separates three concepts that are often mixed together: the transaction price, the cash budget and the economic cost of ownership.

Transaction price

We start with the vehicle price, dealer fees, add-ons and a simplified state base sales-tax estimate. Local taxes and government charges can differ, so this is a planning estimate, not an out-the-door quote.

Financing

For an amortizing loan, the estimated payment is calculated from the amount financed, APR and term. Total interest is the sum of scheduled payments minus principal. Longer terms can lower the payment while increasing interest.

Ownership cost

Cash ownership cost combines the loan payment or cash allocation with fuel, insurance, maintenance and registration assumptions. Economic cost adds estimated depreciation and financing interest without counting loan principal twice.

Scoring

The current deal score is intentionally transparent. It adjusts for entered add-ons, the difference between vehicle price and dealer total, negative equity, higher APR and longer terms. It is a decision aid, not a market valuation or credit assessment.