This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Purchases With High Hidden Costs

E-Mail This Article to a Friend >>

One of the most important factors to consider when making a purchase is the lifetime cost of a product.

Most people focus primarily on the purchase price of the item and forget that there are usually other expenses attached down the road. Understanding the total amount of money you will need to pay over the product's lifetime can mean the difference between having a budget that works and constantly wondering where your money went.

The lifetime cost is the amount you must spend beyond the actual retail price, like batteries for a toy or food for a pet. It affects everything from the biggest purchases you make to smaller, everyday items and can add up to thousands of dollars a year.

Here are five examples of items where the lifetime cost is far more important than the actual purchase price:

5. House

Many people thinking about buying a home look at the cost of rent and compare it directly to a mortgage payment. While this is one factor to consider, the lifetime cost of a house is much more than the monthly mortgage payment. A house ultimately has many more expenses than renting an apartment.

If these additional expenses aren't taken into consideration, you could purchase much more house than you can truly afford. Some examples of expenses that are often overlooked when purchasing a house are the cost of furnishing a much larger area, yard upkeep, repairs and maintenance, increased insurance payments and increased utility costs.

4. Car

When most people purchase a car, they are focused on the retail price they must pay. There are, however, many other factors that can tack on costs over the life of the car. Gas, repairs and insurance all need to be considered and these can vary greatly between car models. Edmunds offers a calculator to help you determine the true cost of owning a car to see how much these lifetime costs can affect the actual money spent after the purchase.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs