Maintenance Expenses

AAA

DEFINITION of 'Maintenance Expenses'

The costs incurred to keep an item in good condition and/or good working order. When purchasing an item that requires upkeep, consumers should consider not just the initial price tag, but also the item's ongoing maintenance expenses. Maintenance expenses are a major reason why home ownership can be more expensive than renting, for example. However, sometimes even items that are merely leased, not owned, such as a leased car, will require the owner to pay maintenance expenses.

INVESTOPEDIA EXPLAINS 'Maintenance Expenses'

Examples of maintenance expenses for automobiles include gas, oil changes, alignment, tire replacement, brake fluid and car washes. Maintenance expenses for a house include lawn care, plumbing repairs, roof repairs, hazard insurance premiums and replacement of worn out appliances.



RELATED TERMS
  1. Auto Insurance

    A policy purchased by vehicle owners to mitigate costs associated ...
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin ...
  3. Operating Expense

    A category of expenditure that a business incurs as a result ...
  4. House Maintenance Requirement

    The minimum amount of equity that an account holder must maintain ...
  5. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  6. Accessory Dwelling Unit (ADU)

    A legal and regulatory term for a secondary house or apartment ...
Related Articles
  1. FYI On ROI: A Guide To Calculating Return ...
    Active Trading

    FYI On ROI: A Guide To Calculating Return ...

  2. 12 Car Insurance Cost-Cutters
    Budgeting

    12 Car Insurance Cost-Cutters

  3. Beginner's Guide To Auto Insurance
    Options & Futures

    Beginner's Guide To Auto Insurance

  4. The True Cost Of Owning A Car
    Insurance

    The True Cost Of Owning A Car

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center