ARTICLE: The real cost of car ownership - Page 3 - Team-BHP

musicmanaman · 2nd September 2007, 19:43

The points mentioned by Carboy and SKS Biker in this tread are very usefull, I initially thought in the following way.

I travel for around Rs 4k by taxi's every month, and the Taxi's cost usually works out to about Rs 9-10 per Km, to add to that I don't have the convinence of travelling anytime I want and the heat within the Taxi in summer months is too much, I though that even if owning a car cost me Rs 9-10 per km, atleast I have a whole lot of added benifits.

I though I'm very wise and opted to buy a cheap car, came across a 99 carb zen which looked good and the general perseption was that Zen gives good mileage, so I picked the same up.

Now when I work out the running cost per Km and only take Fuel and Maintanence it still works out to Rs 9-10 per km, BUT when I add the downpayment, the transfer charges, the pending tax, the fuel, the maintanence, the parking, etc, etc, my cost works out to Rs 25+ per Km, now this will keep coming down with the more Kms I drive, but I'll have to really drive a lot for it to come down and also keep the car and not sell it.

One thing I have got good at after owning a car is perparing exl sheets to work out cost, and to add to the above if I sell the car today I will run a loss of about 1.2 lakhs without fuel and about 1.5+ with fuel.

Lesson learnt is owning a car is not cheap and fuel and the average that a car returns are a very minor part of the total ownership cost, but unfortunately average is the only part we all seem to work on when buying a car.

DieselFan · 2nd September 2007, 20:08

Musicmanaman - I am not sure about your mathematics. On a long term ownership buying a car is more economical than renting out the car. On buying a car and running it for at least 5 years one will not spend more than 10-12 RS. a KM (Here my asumption is that the car is a C Segment car). The assumption also is that you use the car for more than a 1000 km a month. If you use the car for less than 1000 KM a month than the cost per KM increases. TCO will exceed 25 Rs. a Km if you run the car 300 KM a month which is less than 10 KM a day.

musicmanaman · 2nd September 2007, 20:25

DieselFan - I agree with your comments and the more I drive the more the cost comes down, and from where I stand right now, I'll sure have to drive a lot for the cost per Km to come down. My usage has been about 20 km's per day and about 600-650 km's in a month in the last 10 monts that I have owned the 99 Carb zen.

The lesson learnt by me for me is buy a cheap car and drive it as much as possible, and it's best to buy outright if one can.

I would have been in a much better position had I bought a 97 carb 800 which I was getting at 65k and drove it as much as possible, because then I would not have bouthered about the 5+k EMI that I'm paying.

guyonblackybx · 2nd September 2007, 20:49

Hi GTO,

This article is an eye opener

Thx for sharing
Naveen

chawrevakil · 23rd January 2008, 01:07

Friends, car is no more a need, basically. It is your emotional need, like rightly said entertainment etc. And if you strive for comfort, you have to pay for it. Taxis are not availbale just under your apartment, you must walk down for a while, at least. May not be so with your car. And, if you or your near one falls ill suddenly and you need to go to the doctor / hospital at 2 o'clock midnight, and then, if you don't get taxi, and, may almighty forbid, a life is lost, what is the cost ?

All things in life are not computed in terms of money.

2nd September 2007, 19:43	#31 (permalink)
musicmanaman BHPian Join Date: Nov 2006 Location: kolkata Posts: 118	The points mentioned by Carboy and SKS Biker in this tread are very usefull, I initially thought in the following way. I travel for around Rs 4k by taxi's every month, and the Taxi's cost usually works out to about Rs 9-10 per Km, to add to that I don't have the convinence of travelling anytime I want and the heat within the Taxi in summer months is too much, I though that even if owning a car cost me Rs 9-10 per km, atleast I have a whole lot of added benifits. I though I'm very wise and opted to buy a cheap car, came across a 99 carb zen which looked good and the general perseption was that Zen gives good mileage, so I picked the same up. Now when I work out the running cost per Km and only take Fuel and Maintanence it still works out to Rs 9-10 per km, BUT when I add the downpayment, the transfer charges, the pending tax, the fuel, the maintanence, the parking, etc, etc, my cost works out to Rs 25+ per Km, now this will keep coming down with the more Kms I drive, but I'll have to really drive a lot for it to come down and also keep the car and not sell it. One thing I have got good at after owning a car is perparing exl sheets to work out cost, and to add to the above if I sell the car today I will run a loss of about 1.2 lakhs without fuel and about 1.5+ with fuel. Lesson learnt is owning a car is not cheap and fuel and the average that a car returns are a very minor part of the total ownership cost, but unfortunately average is the only part we all seem to work on when buying a car. Last edited by musicmanaman : 2nd September 2007 at 19:47.

2nd September 2007, 20:08	#32 (permalink)
DieselFan BHPian Join Date: Mar 2007 Location: Bangalore Posts: 431	Musicmanaman - I am not sure about your mathematics. On a long term ownership buying a car is more economical than renting out the car. On buying a car and running it for at least 5 years one will not spend more than 10-12 RS. a KM (Here my asumption is that the car is a C Segment car). The assumption also is that you use the car for more than a 1000 km a month. If you use the car for less than 1000 KM a month than the cost per KM increases. TCO will exceed 25 Rs. a Km if you run the car 300 KM a month which is less than 10 KM a day. __________________ If you have not failed you have not tried enough. Swift Diesel VDI - Feb '07 onwards Santro LS- Mar '01-Feb '07(59000 KM) Sold.

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2nd September 2007, 20:25	#33 (permalink)
musicmanaman BHPian Join Date: Nov 2006 Location: kolkata Posts: 118	DieselFan - I agree with your comments and the more I drive the more the cost comes down, and from where I stand right now, I'll sure have to drive a lot for the cost per Km to come down. My usage has been about 20 km's per day and about 600-650 km's in a month in the last 10 monts that I have owned the 99 Carb zen. The lesson learnt by me for me is buy a cheap car and drive it as much as possible, and it's best to buy outright if one can. I would have been in a much better position had I bought a 97 carb 800 which I was getting at 65k and drove it as much as possible, because then I would not have bouthered about the 5+k EMI that I'm paying.

2nd September 2007, 20:49	#34 (permalink)
guyonblackybx BHPian Join Date: Sep 2007 Location: Hyderabad Posts: 223 View My Garage	Hi GTO, This article is an eye opener Thx for sharing Naveen

23rd January 2008, 01:07	#35 (permalink)
chawrevakil Newbie Join Date: Jan 2008 Location: Aurangabad Posts: 7	Friends, car is no more a need, basically. It is your emotional need, like rightly said entertainment etc. And if you strive for comfort, you have to pay for it. Taxis are not availbale just under your apartment, you must walk down for a while, at least. May not be so with your car. And, if you or your near one falls ill suddenly and you need to go to the doctor / hospital at 2 o'clock midnight, and then, if you don't get taxi, and, may almighty forbid, a life is lost, what is the cost ? All things in life are not computed in terms of money.