How much does your car really cost you?

bandraoi

I was reading something the other day that basically said that for alot of people it would actually be cheaper to take a taxi places they need to go then to run the car they have.

It got me thinking, how much does your car actually cost you per year, before you even drive it anywhere?

- Insurance
- MOT
- Maintenance
- Loan Interest (not repayments since some of that will be recouped by the value of the car at sale)
- Tax
- Depreciation.

Depreciation is probably the most difficult to measure but going by the AA -
http://www.theaa.com/cbg/goodadvice/commongoodadvice.jsp?menu1=1&menu2=3&fileName=depreciation -
Say 40% year 1, 10% per year for the next 4 years and 3% per year thereafter. (all % based on the original as new purchase price)

embb

With petrol mine was costing me, on average, £40 pw. Considering I paid for it cash (£500) so had no car payments to make it's a huge amount, especially on my low income, I couldn't justify it, got rid of it and now spend £5 pw on a taxi back with all my weekly shop, best thing I ever did (but I do still miss it sometimes, on my bad days )

sallyx

Well this is the exact reason that I have just written letter to hand back my car. I have always had a car since passing my driving test 14 years ago so not sure how it will work out but hey worked out the car was costing me near enough £4500 a year on everything!!!!!!!:eek: I worked out that on long distance journeys I can hire a car and short ones and take taxis...still won't cost me £4.5k a year!!
So this money will now be put to paying off my final debt and hopefully be debt free in a year!! :j

tiff

It's the reason we only have one car. I am a SAHM, I work online and I have the car during the day as kids school is over 2 miles away. I also have to run them around after school. DH gets a lift to work and when the lift doesnt go in he gets the train. Still works out cheaper than a second car. Makes him feel like an apprentice though he said, asking for a lift all the time!

helping_hubby

I've been working out what my car will cost me if we move offices, as I've been considering taking a train to work. Aside from depreciation, I worked out that I'd spend £1363 (RAC, petrol, MOT, service, road tax and insurance). It's hard to estimate repairs...it could be £80 for 2 tyres, or £1000 for something more serious.

If I got the train it'd cost me £1067 a year (including trips to town and parents). I'm not sure £300 and repair costs are enough to sway me to give up the car.

Madcatgirl

I agree, that a car really is expensive and a luxury, although I do have one myself. I did without a car for about 3 years when I lived in Brighton without too many problems. I got the bus to work (15 miles each way, £12.50 a week), got a taxi back from the supermarket once a week (£4.50) and just generally walked everywhere.

I got a car purely for convenience, since I was going to uni one way, and then work the other, and lived a bit too far from tescos to make it a comfortable walk (now live in Bristol). I paid in cash, £700, Tax, £120, Mot, £200, petrol, £30 per month, insurance (fully comp) £350.

Then my car got stolen, trashed, and I had to pay £150 to the police and towing company, and I was advised by my insurance company not to claim, as my premiums would go up to £600 per year!!!!

I bought another car (£550), which is lovely, although bigger than the first one, insurance (3rd party!! £200), petrol is more now because of the bigger engine (£40 per month).

I really could save money by not having the car, but I couldn't do car boots, and I do more stuff now, because having to walk or get the bus, I used to be a bit of a hermit! I suppose it's about cost vs quality of life.

tsharp

The loan that we bought our two cars for is costing us £363 a month, and that's without the MOT/Tax/Petrol/Repairs/Insurance, which i just don't want to work out!

kylestyle06

I'm into my cars, and the reason I took a loan out was to get a nice car.

But now, at 20, I can't afford it, and really don't want to get rid of my car as thats what keeps me sane.

Car costs me around £20 a week petrol, just to get from and work, £180 a year tax, £800 TPFT on insurance, repairs around £300 every 6 months. So in total around £2,000 a year. I thinkit needs to go

Sloppy_Saver

helping_hubby wrote:

I've been working out what my car will cost me if we move offices, as I've been considering taking a train to work. Aside from depreciation, I worked out that I'd spend £1363 (RAC, petrol, MOT, service, road tax and insurance). It's hard to estimate repairs...it could be £80 for 2 tyres, or £1000 for something more serious.

If I got the train it'd cost me £1067 a year (including trips to town and parents). I'm not sure £300 and repair costs are enough to sway me to give up the car.

Have you looked into rail cards and such to try and lower your travel costs? I travelled from the centre of London to my house in a village north of Manchester and it cost me £29.90 (£4 for zone 1 tube ticket to Euston, £24 for train to Manchester Piccadilly, 70p for tram ticket to Victoria and 1.20 for train to my village). Was amazed.

We have onyl one car and sometimes it's a real pain if my OH is using it and I need it, but generally it sits idle on the driveway quietly depreciating. Wish we could get rid of it, but it is a necessary evil I guess.

anniecave

Insurance/breakdown cover- £885
Servicing/MOT/tax - £340
Repairs and bits and pieces - £351.50
Petrol - £884.80
Depreciation (saving towards next car) - £780

Total = £3241 - ouch

I could probably manage on a combined bus / train pass at only about £1000
Would waste at least an hour a day on that though.

so yeah the car is definately a luxury for me.

carl310166

You Can run a car fairly cheaply....

Buy a little diesel car off ebay, i paid £500 for mine (Pug 106) in April 05

I pay £103 per year for insurance, £110? for tax and i fill up once every 6 weeks at a cost of £35-40

In that time, i have spent a little on repairs, but less than a months HP if you were buying a new car.

It's up to you, spend £2-3k per year on repayments/running costs etc or get a "banger" for a fraction of that, plus i don't mind if it gets knocked in the supermarket carpark.

I do have a another car that my wife uses, and a sports bike £££, these do cost money to run and i choose to spend money on those,but my little Pug cost very little.


Don't forget, if you choose NOT to run a car, you can save Taxi money by having your shopping delivered by Tesco etc, there are codes available whereby you can save the delivery charge.