How to work out how much a car costs to run on a daily basis?

DantheMan

paddedjohn wrote: »

If an £800 car is only worth £500 a couple of years later then its depreciated by £300 or nearly 40% so depreciation should be taken into account especially since the car is 15 yrs old so may not last a couple of years.;)
A scooter is a great idea especially considering the short journey.

If I buy a car at £800, i don't really plan on selling it, if it becomes too expensive to repair then maybe it's an option, but it's literally sold to get it off my driveway and to let someone else deal with the problems, which they would be made fully aware of.

Alternatively, I could sell it for parts and make double back what I bought it for. Therefore, depreciation on an £800 car is not worth considering

worried_jim

Last year I bought a Rover 600 with a full MOT for £500.
Insurance was £200
Tax was £225
Fuel spent for the year was £600.
So £1525 to run the car for a year (£29.32 per week) and I did about 4000 miles in the year. At the end of the year I scrapped the car for £172 so over all running cost drops to £26 per week. To do the journey to work on the train would cost £23 per week and take 45 mins rather than 10 mins, plus I have the freedom to go anywhere at any time.
I would imagine that you should be able to do the same, but your insurance cost would be a little higher but work it out overall.

Joe_Horner

Ok, working through with a few assumptions:

(1) you get 2 years use out of the car then scrap it for nothing (ie: lose the full purchace price)
(2) during those 2 years it needs no major work, costing £150 servicing and £55 for a full-price MOT test each year.
(3) you use it for nothing except for your commute,, which you do 5 days per week for 49 weeks per year
(4) it manages about the same urban fuel consumption as the 2000 model for which i have figures (26.5mpg)


So, total costs per year just for having it on road are:

Half its value = £300 (at the £600 you've negotiated)
Road tax = £140
MOT = £55
Servicing = £150
Insurance = £500 (your lowest quote above, may drop in second year)

Total = £1145 per year.

Because of assumption (1) above that has to be spread over the 245 working days in the year = £4.67 per day

Fuel for 14 miles @ 26.5mpg = 0.53 gallons = 2.4 litres = £3.24 per day @1.35 per litre

So, total daily cost = £7.91 per day.

That gives a daily saving of £6.29, or £31.45 per (working) week over what your'e paying at the moment to cover unexpected costs and overall savings. Worthwhile.

But bear in mind that, if you have a car, you'll almost certainly start using it for other things (including things you don't do at the moment because transport is difficult). That will eat into those weekly savings.

dannylfc_1

There are also the intangible benefits of driving as opposed to public transport.

harveybobbles

paddedjohn wrote: »

Say you got 2 years out of the car then that will cost about £300/year depreciation so £6 per week, add fuel £20 per week, insurance £20 per week (complete guess as it depends on your age and driving history etc) then tax at £4 per week est and mot and repairs at £5 per week that is a rough total of £49 per week before you add in parking etc.

The lowest the car will ever get to in terms of value is about £150.

On a low value car like this Mazda I dont really think depreciation should be a major factor.

It'll still be worth £700 next year to be honest.

davo75

I am trying to make a similar decision myself at the moment, so thanks everyone for the useful information. I think a car will cost me more than currently paying for train, as it includes parking at work, parking at home and all the rest of it.
Was just reading this and would be looking for more information like this as to how you can keep costs down effectively: http://www.breakeryard.com/blog/motoring-costs-to-a-minimum/

MEM62

My car cost me £4.93 per day to run. That's the monthly amount I pay in income tax on a company car x 12 / 365. Simples!! :rotfl:

Exile_geordie

dannylfc_1 wrote: »

There are also the intangible benefits of driving as opposed to public transport.

Very true but also hte same could be said vice versa. Like not sitting in a jam on the M6 on a sunday when you just want to get home for example

worried_jim

Exile_geordie wrote: »

Very true but also hte same could be said vice versa. Like not sitting in a jam on the M6 on a sunday when you just want to get home for example

Next time I see everyone queuing for the rail replacement bus service on a wet cold dark Sunday evening as I drive past I shall smile thinking about your comment above.

Exile_geordie

worried_jim wrote: »

Next time I see everyone queuing for the rail replacement bus service on a wet cold dark Sunday evening as I drive past I shall smile thinking about your comment above.

Hmmm and there goes the tumbleweed of someone who missed my point