Total cost of ownership

Mister Baddog

I might break down and buy a car. I found this ancient "cost of motoring" thing from the AA. Do ye know of any similar guide — ideally more modern — that I might look at? If it makes a difference, I'm thinking about a Toyota Yaris hybrid. Or I can just use those 2019 numbers and adjust for year-on-year inflation or something. Does the AA thing seem accurate (for 2019 at least)? I can imagine that the recent reinstatement of various taxes will have an impact.

mulbot

It's not accurate in my case. The car my wife has,, no loan. About 25/30 euro a week on petrol. Insurance for us both, little under 500e per year. , tax, 280e. Service about 400. Nct test, 55e. I don't factor depreciation into the running costs.

HeidiHeidi

I'd use those headings and do a bit of research yourself - a lot depends on your personal circumstances - insurance quotes will vary wildly, you might or might not have any parking charges, interest depends on whether you took a loan out to finance the car etc etc

Depreciation will depend on how old the car you buy is - if you buy new, it'll lose most in the first year (the first week, really) and downwards on a sliding scale through the years.

Mister Baddog

Thanks for the advice! Yah I don't see how I'd spend €4000 on parking. And given that I'll be buying used, the depreciation number is a lot lower.

Rows Grower

Don't forget to factor in the cost of alternative modes of transport and time wasted if you don't buy a car.

timmyntc

https://www.boards.ie/discussion/comment/122511801#Comment_122511801

Just because you choose not to include depreciation doesn't mean it can be dismissed.

It is a cost of ownership - higher depreciation makes rentals/PCP more attractive also as that cost isn't borne as much by you

magicbastarder

https://www.boards.ie/discussion/comment/122512184#Comment_122512184

I've often wondered what 'miscellaneous' costs they could be referring to which average out at more than a tenner a day. Maybe they're including the cost of building your own standalone garage on your one acre site...

mulbot

https://www.boards.ie/discussion/comment/122512864#Comment_122512864

I can dismiss it if I choose,as its running cost we're talking about. When I buy a car the amount I give is gone,i don't buy the car with the assumption that it will be worth X amount at another given time. The running costs, from my view, are what it takes to keep the car on the road, from time of purchase to moment of sale,whatever the car is worth at that time is a bonus to put towards upgrading.

magicbastarder

You don't think the cost of replacing the car periodically is part of the TCO, i.e. total running costs? You might be on your own on that.

Seve OB

https://www.boards.ie/discussion/comment/122512864#Comment_122512864

I own my car 15 years.

I’m f€*#%ed if I’m factoring in depreciation into the cost of running it 🤣

mulbot

No I don't. Like I said, I don't buy a car assuming it'll be worth X amount at sale point. What the car depreciates isn't relevant to me, what it costs to run the car is

magicbastarder

But you're not including the cost of the car in how much it costs you?

If you intend on never replacing the car, I can kinda see a logic there.

mulbot

https://www.boards.ie/discussion/comment/122513222#Comment_122513222

That's upfront cost (purchase cost), vs running costs.

magicbastarder

The thread title is 'total cost of ownership' - you were the one who first said 'it's running cost we're talking about' so we're at cross purposes here.

mulbot

https://www.boards.ie/discussion/comment/122513259#Comment_122513259

My apologies, I was referring to the opening line of the link provided "total cost of running a family car". Of course, running costs, and overall costs are different.

timmyntc

Total cost of ownership includes purchase costs.

If you only look at running costs (insurance, tax, NCT, servicing, fuel) then an EV will likely win out every time.

But in reality a new EV (or any new car) is a huge expense that totally changes the maths on whether it's a sound investment or not.

Seve OB

https://www.boards.ie/discussion/comment/122513336#Comment_122513336

yep which is why I’m quite happy running my 16 year old diesel for another few years anyway