[Vysakh]

Originally Posted by ssambyal1980

And not to forget the strange rule, wherein the outstation registered vehicles are not allowed to ply in these two states continuously beyond three months period lest they re-register their vehicle in the states. Means that one has to shell out for registration again even if the vehicle he/she is owing is substantially old.

One month, not three!

[ssambyal1980]

Originally Posted by Vysakh

One month, not three!

Thanks for the update. Actually during my road trip to Hyderabad in 2014, I faced harassment at the hands of traffic cops due to outstation vehicle. At that time the cop verbally told me that as per rule you can only drive for three months in AP with outstation registration number, after that you have to re register your vehicle in AP, although I had arrived in Hyderabad only two days ago. As I had no idea regarding the rule, so I had no option other than to believe him. Nonetheless this rule is nothing less than absolute harassment for the outsiders.

[Ash_vtec]

This article got me thinking as to what is true cost of ownership and i quickly did some back of the envelope calculations for one of our cars...

Am i doing this right ?

MODEL YEAR: 3/2013

LOCATION: BLR

MODEL: VENTO TDi HIGHLINE

TOTAL COST INCLUDING ALL STATUTORY LEVIES: Rs. 12,75,000/- (verified)

TOTAL ON INSURANCE: Rs. 34,857 (verified)

TOTAL ON SERVICE/MAINTENANCE: Rs. 25,000 (rounded off) (verified)

FUEL: On average Rs. 2500 x 31 months = Rs. 77,500

Approximate PRESENT MARKET VALUE as per Indian Blue Book = Rs. 7,75,000/-

DEPRECIATION: Rs. 5,00,000/-

ACCESSORIES: Rs. 0/-

TOLLS/PARKING: Rs. 5000/- (not verified)

KMS DRIVEN AS OF DATE: 33,100


TOTAL INCLUDING DEPRECIATION: 5,00,000 + 77,500 + 25,000 + 34,857 + 5,000

Rs. 6,42,357 divided by 33,100 kms driven till date

We get approximately Rs. 19.41 per km.


DISCLAMIER: Dont flame me, this is in no way 100% accurate but just a rough idea jotted down on a scrap of paper in 5 mins.

[Nilesh5417]

Source

Interesting read (cause it has figures) hence posting though the article quotes the Ford Global Survey through out the article and very little from the ARAI revelations.

It would be interesting to know what T-bhpians think are reasons for over all cost of ownership going high. Do include a line in your reply to mention the reason that you think is responsible for jacking up the over all cost of ownership of a car in India.

Besides the cost of EMIs, vehicle insurance, taxes, regular maintenance and unscheduled repairs and servicing along with toll tickets and parking fees, it is also the enormous amounts of fuel utilized and bad quality of road in India that also escalate costs of vehicle maintenance.

Taking only fuel expenses into account, it is these costs that actually comprise about 30% of operational costs of running a vehicle in India. Besides the ever increasing prices of both petrol and diesel, bad road conditions in India, traffic snarls and start/stop driving also enhances cost of vehicle maintenance.

On similar lines, earlier this year, a global survey conducted by Ford found that car buyers in India paid more attention to fuel efficiency rather than engine power, features, size, safety or stance.

The survey spanned Asia Pacific region and it was noted that fuel efficiency is a developing economy phenomenon with cost of ownership being a vital factor in deciding choice of vehicle being purchased. Higher congestion in these region also played a major role as buyers were aware that power packed cars was of little use.

The survey which spanned 9,509 respondents in 11 markets estimated that 6 out of 10 buyers in India preferred higher fuel efficiency. 72% buyers seek to save money while only 33% stated that they would pay more attention to engine power. Indian buyers were concerned about fluctuating fuel prices while 60% estimate that there will be no stability in prices over the next year at least. It is with this in mind that 56% of Indian car buyers would prefer more fuel efficient vehicles over those models that boast of higher capacity engines.

Sentiments of Indian car buyer were also mirrored by buyers in Australia, Hong Kong, Malaysia, South Korea, Taiwan and New Zealand. In these Asia Pacific markets as well, it was noted that more than 80% of car buyers paid more attention to mileage. What was seen at a mere 66% in India rose to 80% in these regions while even Vietnam was at 69.3% and Thailand was at 78.70%.

Those buyers in India who opted for more powerful vehicle were ruing over their choice and regretted not purchasing a more fuel efficient car. In fact, buyers in India scored the highest with 52% regretting their choice over 43% in Thailand and 42.30% in Vietnam. The survey also concluded that those buyers in India who opt for more engine power and performance are doing so for lifestyle reasons.

[SmartCat]

Agree that Total Cost of Ownership will drop if road infrastructure in city (congestion reduction) and highway (conversion to 2+2 lanes) improves. Naturally, lower taxes on fuel and new cars will help too.

But one advantage India has over other countries is massive choice of new cars to choose from, across different budgets. If you include pre-owned cars, the above advantage is amplified.

However, European countries and countries with huge population densities (Eg: Singapore) actively discourage car ownership and people there are worse off than us. Less developed countries in Africa have very little choice (in terms of budget) of vehicles.

(click on image below and zoom in)



Source:
http://www.autoblog.com/2013/05/29/i...und-the-world/

[Rajeevraj]

Confusing article. Starts with the ARAI survey and then goes all over the place. The Ford Survey link also seems to be linking to an article about used car sales.

To me, in general,it is expensive to own a car in India because only a very small percentage of Indians can afford even the basic car. There is a reason why car sales are in the 200,000 range while the 2 wheeler sales are 1.4-1.5 million a month.

Maintenance being expensive would be a relative term. If you bite off more than you can chew and stretch to buy from a particular segment, the expenses can cause a major impact. On the other hand, if you buy from the segment which is on par with your income, the maintenance will not feel high.

Within the reasons mentioned, fuel consumption would be a major cause of increased spends on the car. Lot of people go with the manufacturer quoted ARAI rating which will be way higher than what one actually gets. In addition, adverse traffic conditions result in driving the FE even lower. Hence not surprised at the comment in the survey that said that many people regretted not buying a more fuel efficient car.

[lurker]

MARK MY WORDS

Era of petrol/diesel cars is coming to an end.
by 2030 most gasoline/oil burner engines will cease production.

this is the last gasp of petrol.
we are witnessing the final generation if internal combustion engines.

these engine technology based on fossil fuels should have ceased in 1970s itself and it is a wonder that it stretched so far due to geo-politics of a certain superpower. Else this tech would have died long ago.

[alpha1]

Originally Posted by lurker

MARK MY WORDS

Era of petrol/diesel cars is coming to an end.
by 2030 most gasoline/oil burner engines will cease production.

this is the last gasp of petrol.
we are witnessing the final generation if internal combustion engines.

these engine technology based on fossil fuels should have ceased in 1970s itself and it is a wonder that it stretched so far due to geo-politics of a certain superpower. Else this tech would have died long ago.

Well, no other source of motive power is as easy, convenient as "fill it, shut it, forget it" as the internal combustion engine.
Unless we are talking about establishing an entire ecosystem of standardized batteries that can be exchanged for fully charged ones at "gas stations" as easy as buying new Duracell/Energizer cells from local store.

###

Who says the cost of ownership of cars is high in India?
Are we taking insurance, parking (usually free in India), environment taxes, congestion tax (alien concept in India), etc into the total cost of ownership? What about cheap servicing from local garage?
These things may be much more aboard compared to India.

[deerhunter]

Originally Posted by alpha1

Who says the cost of ownership of cars is high in India?
Are we taking insurance, parking (usually free in India), environment taxes, congestion tax (alien concept in India), etc into the total cost of ownership? What about cheap servicing from local garage?
These things may be much more aboard compared to India.

The title of the article itself is misleading. ARAI reveals why it is expensive to own a car in India. Expensive in comparison to where? I think India has one of the cheapest overall cost of vehicle ownership.

Vehicle service costs in India is one of the cheapest in the world. Not just in FNGs, but in the ASCs too. For eg: Labour charge in a Honda ASC for a City medium paid service is around 1200. That is almost equal to $17. Where else in the world has such a low labour charge in an ASC for a similar car?

[vigneshkumar31]

I have tabulated the cost of ownership (at actuals) for my Safari Storme EX.

Hope this gives an idea for any of the prospective buyers or anyone looking for a comparison

Kumki Ownership Cost Tracker.pdf

[kbishwa]

Are we buying what we need or what auto-makers want to sell? Or what your neighbour or colleague is buying?

When we go out to buy an automobile, be it a bike or a car, we get more confused when we actually seek clarity for easy and effective decision making.

This is true for most people in general.

So, what can make our life easier. Following is the list of inquiries that one needs to do with self and other relevant to decide with ease:

1. Do you really need one? If yes then what are the alternatives if you don't buy?

You could already have a working automobile at your home meeting your requirement. You could pool the car (and socialize), take taxi (ole ole)

2. Now you have decided to have a new automobile (say a car from now onward), so the question is: For what purpose you need a car?

Is it for commuting from home to office only? Or for highway cruising? Or for both? Or for adventure? Or for dropping you kids...the list is long. You must know the purpose and accordingly decide. And the frequency of such use. If once in a year you go for off-roading, then you may better hire one.

3. What are the features you would like in your car? Or do you only need the bare minimum things (including safety features, no compromise here)? Or you need everything under the sky!

This is the place where a brochure/salesman would confuse you. You must know what you need. Irrespective of how much more you can spend. Do you really need a touch screen? Or how often will you use the real capability of 4 wheel drive? The best way to choose is again by the method of elimination, with how many features you can part with, or what are the alternatives for those features.

4. What is your budget? This can be aspirational/minimalistic, so the next question is why this budget?

Please note that the cost of ownership has 3 components:

A. Fixed cost: Say if you buy a Rs 9 lakh car for 5 years and the resale value is Rs 3,52,500 at the end of 5 years (for the sake of simple calculation). Hence you incurred Rs 5,47,500 for 5 years and that comes to Rs 300/day as a fixed cost. You incur this cost whether you drive or not. In other words, more you drive less is the cost in Rs per kilometer.

B. Maintenance cost: (sometimes this cost is a component of Fixed cost only). Depending upon the type of car, usually ~ 1%, without tyre replacement and any additional cost.

C. Variable/fuel cost: Cost of fuel. Here the fuel efficiency, fuel type and your driving style determine the cost. So, say if a petrol car gives a mileage of 10 km/litre and you travel 40 km on given day, then for a Rs 70/litre fuel the variable cost OR fuel cost is Rs 280 for the ride (Rs 7/km). Total cost is Rs 300+280, i.e. Rs 580 (Rs 14.5/km). Maintenance cost ignored.

4. Technology trend: The car of choice should not get outdated very soon. You may ask how early the new technology (like hybrid technology or electric cars) may come as a better alternative. Here we are not talking about technology of accessories but of the machine and important components.

5. Concern for Environment: Our responsibility towards the environment and future generations should be considered. We should be sensitive enough in giving a proper weightage to the environment factor in your decision matrix.

Remember, you get one precious life to enjoy but also it's your money, your environment, your roads and you have to do many other things in this life. And always avoid impulse buying.

Insurance charge may form the part of maintenance cost.

[gkveda]

Good Post !!
In my view, all these thoughts are valid for a buyer who already has a vehicle and is looking for a change. He will be able to think from Grey cells and take (Mostly)right decision.
For a new (Young and dynamic) car enthusiast, it is the heart that makes a call. His enthusiasm in purchasing a new car will over ride all these questions and he will take a call to purchase what ever he was dreaming right from his childhood.

For instance, I was dreaming to own a Fiat(Premier Padmini) Car during my childhood. Also, my dream was to take my mother in my OWN car around the City and to long distances like Tirupathi, Manthralayam etc.

When Nickel started making Noise in my pocket, there were no Premier Padmini in the market. So, did not think of any other car (Like, Maruti 800, 1000 or amby). I just went and purchased a Used Fiat Car and started enjoying. Did NOT think of what would be usage, whether is it beneficial to own a car OR to rent a taxi, OR any such thought came to my mind.

What I am trying to say here is, the dream OR our desire (Like me, Using the car to take my mother in the car) will take over all the above factors.

[alpha1]

Your question is actually not limited to only automobiles.
This question can be asked for EVERY THING that one "buys" and "consumes".
It is a consumerism driven world where latest fad, viral popularity or neighbor's envy drives the consumption.

Let's see why do you really require an independent automobile, when some or the other means of public transport is usually available. The answer can be that public transport is pathetic and uncomfortable, and now that we are used to certain air conditioning standards and space - we want our own vehicle.

Yeah, but then why upgrade if you already have a personal vehicle?
Pat comes the answer - safety, performance, technology, features, maintenance of old vehicle etc.

But no one does soul searching and fact finding: How much is the price of additional safety? How much additional safety does it actually lend.
The same goes for performance, vehicle maintenance and other factors.

It is all arbitrary - it may make sense for one individual, but at the same time another may laugh and find it foolish.

[jetsetgo08]

Well, upon reading the thread title, my thoughts drifted into a different plane.

I am on the lookout for a used vehicle and currently I am experiencing the buyers dilemma (is a used vehicle worth X.XX price) vs seller's paradox (the seller who typically thinks that the vehicle could be sold easily for twice that of X.XX).

[Romins]

I have been driving my own car since 2001. Today I am a big evangelist of renting cars and using Uber/OLA. Yes, I love to drive. but to enjoy something I don't need to own it.

I usually rent out Automatic cars for city driving, bigger cars for long trips. One advantage is to change cars depending on the needs. Even if you need car for a long term, there is a solution where you can switch cars, switch cities. Revv has started this yearly subscription program for cars called Switch.

I don't need to worry about maintenance, insurance, road tax when I move to another state, parking for a long time when I am not in town for a few weeks. I enjoy on road assistance and limited liability in case of accident repairs.