AA: Annual car running cost €11,900

Mr Mike · 14-08-2013 09:21PM #1

Hi guys

What do you think of AA estimate for the annual running costs of a family car?

Seems ridiculously high to me.

Alanstrainor · 14-08-2013 09:23PM

Need more details.

Does that include depreciation? What car? How many miles will this family car cover in a year? Diesel petrol?

colm_mcm · 14-08-2013 09:26PM

€1000 a month?

Maybe in their office.

Mr Mike · 14-08-2013 09:31PM

Think it was a small car 1.2L petrol. Covering the average 16000km per year and including depreciation.

No wonder people are struggling with money ;(

OldmanMondeo · 14-08-2013 09:31PM

To be fair, probably not far off. Take car loan, servicing, tax, insurance, fuel into account your looking at the guts of a grand a month.

Valetta · 14-08-2013 09:31PM

Sounds way over the top.

I have calculated my running costs for a 21k 2.2 diesel car doing 10k miles per year at €6,000 including depreciation.

colm_mcm · 14-08-2013 09:36PM

Its nonsense to be fair, they have no way of calculating that.

OldmanMondeo · 14-08-2013 09:53PM

Valetta wrote: »

Sounds way over the top.

I have calculated my running costs for a 21k 2.2 diesel car doing 10k miles per year at €6,000 including depreciation.

Double your milage and see what you get. What loan are you working that on?

1.8 Diesel car, doing 40k klms per year

Per month
€320 plus on diesel
€40 €400 per year insurance
€24 €280 tax
€33 €400 servicing, based on 2 per year at dealer pricing
€42 €500 tyres
€17 €200 pads, discs, wipers, cleaning etc
€324 loan per month based on a €10k loan over 5 year ~(just pulled of a banking site)

€800 per month

Some of these figures are estimates, and I didn't factor in deprecation.

Valetta · 14-08-2013 10:03PM

I'll put up my calculations in the morning .

I'd say the AA are overdoing the depreciation... Probably working off a new price of 25k and trading in after 3 tears for 10k.

CiniO · 14-08-2013 10:05PM

Mr Mike wrote: »

Think it was a small car 1.2L petrol. Covering the average 16000km per year and including depreciation.

No wonder people are struggling with money ;(

I've had a 1.2 petrol car for the last 5 years. It's been doing around 16,000km per year on average.

And over those last 5 years, it cost me less than 12,000euro tincluding every single cost associated with car (cost to buy, depreciation, servicing, tax, insurance, fuel, tyes, screenwash, carwash, parking tickets, etc).

So either I can run a car 5 times cheaper than AA estimate, or their estimation is a bit wrong.

Scortho · 14-08-2013 10:19PM

Mr Mike wrote: »

Hi guys

What do you think of AA estimate for the annual running costs of a family car?

Seems ridiculously high to me.

It is complete and utter jack ****.
My car is an alfa 156 2.5v6.
Running costs as follows.
Tax 1080.
Insurance 1100 (21 3 years Ncb)
Petrol 2120. (8000 miles a year, 24mpg and price of 1.59)
As its an alfa and its 11 years old, maintenance is 1200 (tyres, service, 150 towards belt yearly for 4 years, and contingency)
Depreciation. Meh she's not for sale and when she is I should get 1800 back, maybe a little less but nothing to write home about.

Grand total of running a v6 for the year.
5500
The smile it puts on my face every time the busso revs over 3000. Priceless.

unkel · 15-08-2013 01:04AM

Like Alan said, we need more details of the examples / calculations the AA made

Most Irish people do not take into account some hidden costs of owning a car. They ignore what they paid for the car and they don't understand the opportunity cost of money. I.e. they buy a brand new Toyota Avensis diesel with a few options. In the first year their depreciation is €7k and the interest on the loan for the car is €2.5k. With tax and insurance that's already the guts of the €11.9k the AA is talking about. And that's without driving the car for a single mile

Scortho · 15-08-2013 01:18AM

unkel wrote: »

Like Alan said, we need more details of the examples / calculations the AA made

Most Irish people do not take into account some hidden costs of owning a car. They ignore what they paid for the car and they don't understand the opportunity cost of money. I.e. they buy a brand new Toyota Avensis diesel with a few options. In the first year their depreciation is €7k and the interest on the loan for the car is €2.5k. With tax and insurance that's already the guts of the €11.9k the AA is talking about. And that's without driving the car for a single mile

We can safely say most irish people are bonkers.
Imagine what kinda car you could get for 10 k.
Or even 2k (that jag xj8) and spend the other 8k on running it.

unkel · 15-08-2013 01:27AM

Scortho wrote: »

Or even 2k (that jag xj8) and spend the other 8k on running it.

Bought a lovely €4k 6-pot BMW 5-series today myself. It's mint

lomb · 15-08-2013 02:13AM

It doesnt bother me particularly but some people dont want someone elses used car. I dont either but I dont at this time want to shell out 60k for a new motor which would suit me. I cant see myself paying 25k for a bog spec run of the mill car.
I keep banging on that the cheapest csr to own is something like a 12 year old polo/yaris etc. Cheap to fix, reliable, no depreciation, good mpg , low tax. Can easily maintain ones mobility doing 15km for under 2k a year.

Idbatterim · 15-08-2013 02:24AM

Bought a lovely €4k 6-pot BMW 5-series today myself. It's mint

nice, congrats

E39 or E60?

Alanstrainor · 15-08-2013 09:08AM

unkel wrote: »

Bought a lovely €4k 6-pot BMW 5-series today myself. It's mint

tobsey · 15-08-2013 09:40AM

CiniO wrote: »

I've had a 1.2 petrol car for the last 5 years. It's been doing around 16,000km per year on average.

And over those last 5 years, it cost me less than 12,000euro tincluding every single cost associated with car (cost to buy, depreciation, servicing, tax, insurance, fuel, tyes, screenwash, carwash, parking tickets, etc).

So either I can run a car 5 times cheaper than AA estimate, or their estimation is a bit wrong.

I doubt the 1.2 would be classified as family car for this purpose.

15-08-2013 09:56AM

tobsey wrote: »

I doubt the 1.2 would be classified as family car for this purpose.

Brava/o? Sounds like a family car to me.

tin79 · 15-08-2013 10:01AM

Its a "how long is a piece of string" question really.

I have an 08 family car which I bought for cash at 10,500. Which I will keep for probably 5-6 years at which point it will be worth almost nothing really. Cost of car 1,750 per year. I spend 200 a month on fuel. 2,400 a year. Tax is 390. Servicing 400. Assuming the DMF goes over the 6 years 1500 (averaged out over 6 years) 250 per year. Insurance 700 a year.

So that's just short of 6 grand. But based on unkels post a while back you can easily see how high it could go. Really depending on the cost of purchase, loan cost, tax, insurance cost it could be higher.

I can see a range of anything from 3,000 to 15,000 or more at the top end.

However I would think the AAs figure would be higher than the average

monkeybutter · 15-08-2013 10:17AM

unkel wrote: »

Bought a lovely €4k 6-pot BMW 5-series today myself. It's mint

You flash Harry. What happened to the Saab?

unkel · 15-08-2013 10:38AM

monkeybutter wrote: »

What happened to the Saab?

It will go into the bangernomics thread today :cool:

CiniO · 15-08-2013 08:10PM

tobsey wrote: »

I doubt the 1.2 would be classified as family car for this purpose.

Persumable that's what AA based their calculation on

Mr Mike wrote: »

Think it was a small car 1.2L petrol. Covering the average 16000km per year and including depreciation.

CiniO · 15-08-2013 08:13PM

Scortho wrote: »

We can safely say most irish people are bonkers.
Imagine what kinda car you could get for 10 k.
Or even 2k (that jag xj8) and spend the other 8k on running it.

If everyone were buying old cars for 2k, and no one buying new ones, there would be no old ones after a while.

It's like - you buy second hand thing if you can't afford new one...

F.e most people buy new flat screen TV's, even though they could buy a second hand one for fraction of the price. They do it, because they can afford it, and don't want to go into the risk of buying second hand one which might stop working next day.
And same thing with cars - if someone can afford to buy new - they do.

Scortho · 15-08-2013 09:54PM

CiniO wrote: »

If everyone were buying old cars for 2k, and no one buying new ones, there would be no old ones after a while.

It's like - you buy second hand thing if you can't afford new one...

F.e most people buy new flat screen TV's, even though they could buy a second hand one for fraction of the price. They do it, because they can afford it, and don't want to go into the risk of buying second hand one which might stop working next day.
And same thing with cars - if someone can afford to buy new - they do.

I could have bought a new polo. But I figured why spend 16k plus on a 1.2 3 cyl when I could buy the alfa v6 for 1800 instead!

I suppose though its in my interest for Irish people to continue in my opinion being bonkers!

CiniO · 15-08-2013 09:58PM

Scortho wrote: »

I could have bought a new polo. But I figured why spend 16k plus on a 1.2 3 cyl when I could buy the alfa v6 for 1800 instead!

I suppose though its in my interest for Irish people to continue in my opinion being bonkers!

Yeah, but that's different thing.
If you need/want Alfa v6, then new one would cost you way more than 16k.
No point in thinking for how much could you buy a polo, if you want/need alfa v6.

But there are people out there, who don't need or want anything better than fiat panda, or dacia sandero, and if they can afford to get brand new one for 10k, then no point to buy a secondhand.

kippy · 15-08-2013 10:02PM

12K a year!
I hope not, would need to earn close enough to 20K to actually pay that out.

If they are factoring in depreciation I would assume they are bassing that figure off a relatively new car.

Scortho · 15-08-2013 10:04PM

CiniO wrote: »

Yeah, but that's different thing.
If you need/want Alfa v6, then new one would cost you way more than 16k.
No point in thinking for how much could you buy a polo, if you want/need alfa v6.

But there are people out there, who don't need or want anything better than fiat panda, or dacia sandero, and if they can afford to get brand new one for 10k, then no point to buy a secondhand.

You can't buy a new alfa v6 anyway as it is.

I suppose that's true. I know from when I bought it, the amount of people with new paddy specs asking me was I mad and it was going to cost me a fortune to run.
They didn't appreciate when it was pointed out how much their car would depreciate in the next three years!:)

15-08-2013 10:05PM

Scortho wrote: »

We can safely say most irish people are bonkers.
Imagine what kinda car you could get for 10 k.
Or even 2k (that jag xj8) and spend the other 8k on running it.

Anybody making the statement along the lines of "people are stupid to buy new cars" needs to take a long hard look at themselves. It's an absolutely ridiculous outlook.

Scortho · 15-08-2013 10:08PM

Kali Noisy Driver wrote: »

Anybody making the statement along the lines of "people are stupid to buy new cars" needs to take a long hard look at themselves. It's an absolutely ridiculous outlook.

Go on and explain.
My reasoning behind used.
Buy a bangernomic run it for 5 years and I'd be surprised if the new car after 5 years works out cheaper.

CiniO · 15-08-2013 10:12PM

Kali Noisy Driver wrote: »

Anybody making the statement along the lines of "people are stupid to buy new cars" needs to take a long hard look at themselves. It's an absolutely ridiculous outlook.

Having a new car is generally more expensive than having old one.

AA: Annual car running cost €11,900

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